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Petchem Pricing not Dependent on Feedstock Prices

Petchem Pricing not Dependent on Feedstock Prices
(Tuesday, February 10, 2015) 12:12

TEHRAN Feb 10(NIPNA)--Pricing of petrochemical products is not necessarily dependent on feedstock prices and different factors determine pricing of petrochemical products, said an MP.

Ali Mohammad Ahmadi, a member of the planning, budgets and computation committee of the parliament, said the price of crude oil is only one factor in computing petrochemical prices and there are many other factors like internal economy of countries and their capital turnover for determining the prices. 

"The formula for determining price of petrochemicals follows every country's financial regulations and oil prices have no relationship with the price of the products," he added. 

Petrochemical plants run on natural gas and crude oil and other upstream products. 

In recent months the prices of crude oil has fallen dramatically and several domestic observers have raised allegations that the price of petrochemicals must have fallen likewise while they have barely changed in Iran. 

Iran produced 40 million tons of petrochemicals in the last calendar year, with 9 billion dollars' worth of its products being exported.

The country plans to increase its petrochemical exports to 12 billion dollars this year.

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