The Ministry of Oil has announced the final guideline for pricing oil feedstock and products, outlining the financial roadmap for refineries and petrochemicals until the end of the seventh development plan.
Stabilization of the 1402 Formula until the End of September 2026
The Ministry of Oil has issued a comprehensive pricing guideline for feedstock and products; a resolution that outlines the financial roadmap for the country's refining industry until the end of the seventh development plan. This announcement, which combines "short-term stability," "improvement of coefficients," and "quality assurance mechanisms," has managed the significant ambiguity risk of this industry, according to analysts.
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According to this announcement, for the first half of 2026, the basis for calculating feedstock and products will remain the same approved formula from 1402. This means that refineries will not face any calculation shocks in the first half of the year, which is a positive signal for interim reports in the capital market.
Analysis of the Effects of the New Formula on Refineries
"Sahib Arjomand," the financial deputy of Isfahan refinery, pointed out an important detail regarding the new formula announced from October 2026, which could change the market's perspective on this resolution. He stated that comparing the new coefficients with previous formulas indicates a technical improvement, and a maximum 10% improvement on refineries could be impactful.
Starting from October 2026, a new chapter in pricing will begin. In this model, "quality" takes precedence. The new resolution stipulates that for every 1% negative deviation from quality standards, 0.2% will be deducted from the price or benefits paid. This clause is, in fact, a clear signal from the Ministry of Oil that links the profitability of refineries directly to development and modernization plans.
Despite the improvement of coefficients and the transparency of the formula, the "Clause Seven" (emergency clause) still stands out as one of the important variables in this guideline, allowing the Ministry of Oil to temporarily suspend the new formulas in critical conditions and revert to previous supportive frameworks.
This resolution is a "realistic agreement" that guarantees the continuation of the 1402 formula and the improvement of light and heavy oil coefficients while placing the entry into the new formula for refineries in a technological competition for "quality assurance."
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