Refinery Feedstock Rates to Be Calculated as Before Until the End of the State of Emergency

Under a Council of Ministers resolution, upon the Ministry of Petroleum's determination, pricing of refinery feedstock and petrochemical and refinery products will be set within the framework of Ministry of Petroleum Circular No. 903, dated January 13, 2024, until the end of the state of emergency in the country. The item "Refinery Feedstock Rates to Be Calculated as Before Until the End of the State of Emergency" first appeared on Safir Arjan.

Vice President Mohammad Reza Aref notified the resolution of the 5th meeting of the Council of Ministers regarding the method of calculating the price of delivered feed and received oil products in the physical and financial interactions of the subsidiary companies of the Ministry of Domestic Oil Refining and Petrochemical Complexes to the Ministry of Petroleum, the Ministry of Economy and the country's budget plan.

In this resolution, the pricing of feed and main products based on Notification No. 903 dated January 23, 1402 of the Ministry of Oil, will be valid until the end of September this year and will be calculated based on the new formula from the beginning of October until the end of the seventh plan law.

In the new method, the price of each barrel of crude oil delivered is determined based on 2 formulas of light crude oil and heavy crude oil and depending on the effect of the API grade of crude oil. In this method, the API of light crude oil is equal to 33.6 and the API of heavy crude oil is equal to 29.6

Also, the price of each barrel of gasoline received by the domestic refinery with an octane grade of 87 with different degrees of deviation compared to Ukrainian gasoline of 95 Persian Gulf will be calculated based on the amount of sulfur more than 10 or less than 50 ppm.

The price of each barrel of diesel is determined by the sulfur level of 10 ppm or 50 ppm in the Persian Gulf region.

Currently, this decree will not be implemented until the end of the state of emergency

With the Ministry of Petroleum's recognition of the low fluctuations in the price of crude oil and petroleum products of global gateways due to emergency conditions, the pricing of feed and refining and petrochemical products, which has been notified in this approval, will be determined within the framework of Notification No. 903 dated 23 January 1402 of the Ministry of Petroleum.

The feed price equivalent to the main product, including gasoline, diesel, ordinary kerosene, liquid gas, fuel oil, and aviation fuel of refining companies and products received from petrochemical companies, is equivalent to the last announced price before March 9, 1404, and is considered based on the exchange rate of the same month.

The price of feed equivalent to special refining products is calculated and applied according to the rate of international publications and according to Article 71 of the law on the regulation of part of the government's financial regulations approved in 1380.

The feed equivalent of special products that have a duty rate approved by the market regulation law of the province is priced based on the last announced prices before March 9, 1404 and based on the exchange rate of the same month.

Therefore, the settlement of the difference between oil and oil feed is based on this.