Iran Oil Minister Highlights Petchem Key Role in Economy

Iran Oil Minister Highlights Petchem Key Role in Economy
(Sunday, January 4, 2026) 17:20

TEHRAN, Dec 31 (Reuters) – Iran’s petroleum minister on Wednesday underscored the strategic importance of the petrochemical industry in the national economy, citing its role in foreign currency earnings, job creation and value-chain development, and called for closer coordination to address the sector’s challenges.

Speaking at a meeting with petrochemical industry representatives to mark National Petrochemical Industry Day, Petroleum Minister Mohsen Paknejad said the sector’s issues should be followed up through a joint working group to ensure more effective and constructive engagement.

“The current conditions require that productive sectors receive special support,” Paknejad said, noting the industry’s familiarity with the country’s economic constraints.

He said the sensitivity surrounding petrochemical companies’ foreign exchange commitments highlighted the sector’s strong influence on the currency market and broader economic indicators.

“The significant share of petrochemicals in GDP, employment and value-chain completion means their issues must be prioritised and addressed,” he said.

Paknejad added that several challenges under the petroleum ministry’s remit, including feedstock supply, pricing and pricing mechanisms, were solvable and would be pursued by the ministry’s planning department.

On energy pricing, the petroleum minister said sustained profitability could not rely indefinitely on subsidised feedstock and that a gradual move towards more realistic pricing was necessary, while preserving industry returns.

He acknowledged that energy imbalances had forced some industrial activity to slow or halt, but stressed that gas supply to households and commercial users remained a red line.

Paknejad encouraged petrochemical companies to participate in gas field development, saying any additional gas production would directly benefit the sector as the government seeks to ease energy shortages.

He proposed forming a joint working group led by the petroleum ministry’s planning deputy and including petrochemical industry representatives to continuously monitor issues and raise key challenges at government level.

The minister also called on petrochemical companies to play a greater role in social responsibility initiatives, particularly in education, in line with priorities set by President Masoud Pezeshkian.

Paknejad praised petrochemical firms for their contribution to flare gas collection projects, saying the most effective measures in this area had been carried out by the sector and should be expanded further.

 


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