PGPIC Announces Breakthrough in Resolving Industry Pricing Dispute

PGPIC Announces Breakthrough in Resolving Industry Pricing Dispute
(Wednesday, April 16, 2025) 08:17

TEHRAN (NIPNA) – Persian Gulf Petrochemical Industries Company (PGPIC), Iran’s largest petrochemical holding, said on Tuesday that a long-standing pricing dispute over utility products in the petrochemical sector has been resolved through a coordinated, multi-stakeholder agreement facilitated by the National Petrochemical Company (NPC).

The announcement followed the issuance of an arbitration ruling by NPC, which was tasked with determining utility tariffs after the annulment of previous price-setting regulations by Iran’s Competition Council. PGPIC said the new framework ensures continued stability in the production chain and averts disruption in a sector critical to the national economy.

“In the spirit of collaboration and rational engagement, and in line with our commitment to supporting Iran’s economic drivers, Persian Gulf Petrochemical Industries Company played a central role in bridging the legal gap that emerged in utility pricing between 2021 and 2024,” the company said in a statement.

The dispute arose after the Competition Council’s pricing decisions were invalidated, creating a regulatory void. Utility products—such as steam, water, and electricity—are vital inputs for the petrochemical sector. Two subsidiaries of PGPIC, Mobin Energy and Fajr Energy, supply around 65% of these critical utilities to downstream companies.

PGPIC emphasized that sustained production and the avoidance of volatility were achieved thanks to broad coordination among major state and industry bodies, including the Ministry of Petroleum, the government’s Economic Commission, and key utility consumers.

“The recent consensus reflects the industry’s shared commitment to constructive dialogue and long-term sustainability,” the statement added. “We believe this collaborative model sets a precedent for addressing future challenges in this strategic, export-oriented sector.”

The company noted that the agreement aligns with the national motto for the current Iranian year: Investment for Production.

 


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