Iran to Establish Dedicated Regulator for Petchem Industry – NPC Official

Iran to Establish Dedicated Regulator for Petchem Industry – NPC Official
(Monday, June 2, 2025) 09:15

TEHRAN (NIPNA) – Iran is moving toward establishing a dedicated regulatory body for its petrochemical industry, a senior official at the National Petrochemical Company (NPC) said on Sunday, marking a strategic shift toward more specialized governance in one of the country’s key economic sectors.

Saeed Baghbani, NPC’s Director of Production Control, said during a panel discussion on "Petrochemical Industry Regulation" held at Sharif University of Technology that plans are underway to form an independent sector-specific regulator for the industry.

“In the past, under the broader energy regulatory framework, the petrochemical sector was merely seen as part of a larger structure,” Baghbani said. “Now, a distinct regulatory framework tailored to the specific needs of this industry is being formulated and reviewed.”

He emphasized the dual structure of governance in the sector, distinguishing between macro-level policymaking and operational management, adding that a regulator acts as the critical intermediary ensuring transparency and legal compliance in the execution of state policies.

Baghbani also highlighted the distinction between regulation and facilitation, noting that while facilitation is advisory and voluntary, regulation is rooted in legal mandates, binding requirements, and enforceable guarantees.

The proposed regulatory body would function similarly to Iran’s Competition Council, tasked with drafting rules and regulations aligned with national petrochemical policies. According to Baghbani, discussions at NPC’s latest internal meeting have reaffirmed the necessity of an exclusive regulator focused solely on the petrochemical industry.

He warned, however, that the success of the initiative hinges on the expertise of the regulatory council’s members. “Without a technically proficient and knowledgeable team, regulatory decisions could become a source of challenges for the industry,” he said, calling for the inclusion of seasoned experts in the proposed council.

 


Email is required
Characters left: 500
Comment is required