Vegetable oil association: crude oil importers owed over one billion euros by the state, shortage possible in second half of year

Alireza Sharifi, secretary of Iran's Vegetable Oil Industries Association, said on Monday, July 27, 2026 that importers of crude edible oil are owed more than one billion euros by the government and owe roughly the same amount to domestic banks and foreign sellers.

He said a lack of trust by foreign sellers toward Iranian importers, alongside Iranian traders' distrust of the government and a sharp erosion of companies' foreign currency working capital, has caused crude oil imports to fall steeply. Sharifi added that importers' debt to banks amounts to about 35 percent of their claims on the government and accrues daily interest and currency penalties.

He warned that unless the combined total of imported crude oil and oil extracted from imported and domestic seeds reaches 150,000 tonnes a month in autumn and winter, the market will face a shortage in the second half of the year. Sharifi said the effect of lower imports is not yet visible because demand fell after the removal of the preferential exchange rate, with consumers drawing on earlier stocks rather than making fresh purchases.