NPC Urges Unity in Utility Pricing to Safeguard National Interests

NPC Urges Unity in Utility Pricing to Safeguard National Interests
(Monday, April 21, 2025) 09:28

TEHRAN (NIPNA) – Saeed Baghbani, Director of Production Control at the National Petrochemical Company (NPC), has called for collective agreement among all stakeholders in Iran’s petrochemical industry regarding utility pricing, emphasizing the need to protect national interests.

In an interview with NIPNA, Baghbani urged all parties involved to comply with NPC’s arbitration ruling on settling the utility tariff disputes from 2021 to 2024 and to reach a mutual agreement for 2025 pricing.

The long-standing dispute between Mobin and Zagros Petrochemical Companies—mainly over oxygen delivery rates—led to legal proceedings and a ruling by the Administrative Justice Court that challenged NPC’s ratified tariff framework endorsed by the Competition Council. This situation disrupted financial clarity and led to the suspension of these companies' trading symbols on the stock market. The issue later extended to other stakeholders, including Fajr Petrochemical Company.

Thanks to recent arbitration and multiple negotiation sessions, a resolution has been achieved for the tariffs preceding 2025. However, discussions for setting the 2025 rates are ongoing under the guidance of the Competition Council, with stakeholders aiming to finalize an agreed framework soon.

Baghbani highlighted the differing perspectives of producers and consumers: while producers advocate for a rate reflecting their capital investments, consumers prefer a cost-based pricing approach. He noted that both viewpoints are defensible and should be examined with a focus on national benefit.

The first coordination meeting was held on April 14, with the latest proposal involving utility pricing linked to gas rates.

Baghbani concluded by emphasizing the importance of unity and rejecting isolated decision-making. “We expect all industry players to shift from fragmented thinking to a national outlook that prioritizes public interest and avoids exacerbating tensions that could undermine public trust in the petrochemical sector.”

 


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