Hassan Abbaszadeh, deputy petroleum minister and
CEO of NPC, explained that conflicts among petrochemical companies over utility
service pricing in recent years had led to court cases, the annulment of price
notifications for 2021–2024, and even temporary suspension of some companies’
stock symbols on the Tehran Stock Exchange.
Starting in autumn 2024, the government tasked
NPC with resolving the issue. Through intensive negotiations and expert
analysis, the company facilitated a strategic consensus among petrochemical
firms. Based on mutual agreement, NPC’s arbitration rulings for Fajr and Mobin
Energy companies were issued in early 2025 and incorporated into their
financial statements.
Abbaszadeh emphasized that NPC’s approach is not
directive. “We do not own these companies—they have their own shareholders—but
our professional expertise and problem-solving approach allow us to mediate
effectively, with strong support from the private sector,” he said.
Structured Framework for Pricing and Dispute
Resolution
Prior to 2018, utility service prices were set
through mutual agreements between producers and consumers, coordinated by NPC.
Following a 2018 complaint to the Competition Council, a standardized formula
was introduced, designating NPC as the official body to calculate and
communicate prices. Subsequent updates in 2021 led to price increases,
prompting objections and a 2023 judicial annulment of the revised tariffs,
which created market uncertainty.
Abbaszadeh noted that NPC’s arbitration restores
clarity and stability: companies are now encouraged to submit pricing disputes
to NPC first, rather than pursuing judicial channels. “This smart regulatory
and expert arbitration approach reduces internal tensions, builds investor
trust, and aligns private sector interests with national economic goals,” he
said.
The resolution sets a precedent for transparent,
professional governance in Iran’s petrochemical sector, establishing NPC as a
key regulator, mediator, and enabler of sustainable business frameworks.