New Feedstock Pricing Guideline for Refiners Issued: the 1402 Formula Stays for the First Half, Coefficients Change From Mehr

Iran's Oil Ministry has issued a new guideline for pricing refinery feedstock and petroleum products. According to Mehr News on Tuesday 13 October 2026 (21 Mehr 1405), the formula of the Iranian year 1402 remains valid for the first six months of this year, so refiners' first-half calculations do not change; adjusted pricing coefficients and a revised method for assessing product quality apply from the start of Mehr.

The report says the price deduction figure for heavy crude improves from minus 6 to minus 4.1, and for light crude from minus 5 last year to minus 2 (the report does not state the unit). From the start of Mehr, each 1 percent negative deviation of a product from approved quality standards, such as sulphur content or octane number, cuts 0.2 percent from the price or benefit paid. An "emergency clause" that lets the ministry intervene in the formulas during a crisis or sharp swings in global markets has been kept.

Saheb Arjmand, financial deputy of the Isfahan refinery, said early reviews show some coefficients have improved and that the new formula can affect refiners by at most 10 percent, with a fuller assessment still under way. On Codal, Shetran, Shepna and Shabriz filed the cabinet decree on feedstock and product pricing, and Sharaz and Shavan filed the notice of the crude and product pricing guideline, as Group B material disclosures; Shavan said the notice applies from the start of Mehr 1405 to the end of the Seventh Development Plan law. The final effect on each company's profit depends on its feedstock, product mix and compliance with standards.