Iran’s First Vice President has announced a new government decree revising the pricing mechanism for feedstock supplied to refineries and petrochemical plants. The new mechanism replaces the previous formula and took effect on September 23, 2026, although the decree was officially communicated on October 13, meaning it was announced about three weeks after implementation began.
Feedstock, including natural gas, crude oil and condensates, represents a major production cost for these industries. Changes in feedstock prices can directly affect companies’ profit margins and potentially influence the performance of Iran’s stock market and the supply of export-generated foreign currency.
The new policy reflects the ongoing tension between the government’s need to generate revenue and the industry’s demand for affordable feedstock. However, the full details of the revised formula and its financial implications remain unclear. The impact is expected to become more evident in companies’ monthly reports for October.