The official said urea is one of the many petrochemical products that are directly impacted by the oil market developments.
The price of oil in global markets has diminished dramatically since 2014 by at least 40%, he said, which has seriously impacted the price of petrochemicals as well.
He said Shiraz Petrochemical Plant, a major urea supplier in Iran, has been operating at full capacity despite the price slump and is offering the commodity at a sustainable manner.
The facility is mostly owned by Parsian Oil and Gas Company. The project came on-stream this summer with an investment of €550m and IRR4,000b.
Inauguration of the project brought Iran’s total urea production capacity to 3.7 million tons per year.