Ahmad Mahdavi-Abhari, speaking Wednesday at a meeting between the oil minister and petrochemical industry stakeholders marking National Petrochemical Industry Day, praised the Oil Ministry’s efforts to ensure the country’s energy supply. He said the ministry’s performance — from fuel distribution to managing sensitive national conditions — has been satisfactory.

He said that during the 12-day conflict and under sanctions, oil and gas exports and the country’s energy supply continued without disruption despite limitations, crediting the Oil Ministry, its managers and other sector officials for the effort.

Current Challenges Rooted in the Past

Mahdavi-Abhari pointed to petrochemical investments in developing gas fields, calling the progress a positive development that helped untangle major bureaucratic obstacles. He said cooperation between the Oil Ministry and the Planning and Budget Organization, following guidance from the Supreme Leader, deserved recognition.

He said the industry’s current challenges are inherited from previous years, adding that the goal is not to assign blame but to pursue reforms. “Every administration must address shortcomings,” he said. “Our focus today should be corrective action to improve the country’s conditions.”

He stressed that criticism reflects concern for the industry’s present needs, not complaints about the past, noting that the petrochemical sector plays a key role in the national economy. Industry managers, both at holding companies and operating firms, are on the front lines of the country’s economic struggle and have delivered defensible performance, he said.

Return of Export Revenues

Mahdavi-Abhari said more than 98% of the petrochemical industry’s foreign exchange commitments have been fulfilled. In the first half of the year, Iran recorded $26 billion in non-oil exports, of which $10 billion was repatriated, including $5 billion from the petrochemical sector.

He said petrochemical companies supplied $6.7 billion in foreign currency to the exchange system in the first nine months of the year, while about $2 billion was used directly by the companies. Without the decline in global prices, petrochemical exports could have reached about $13.6 billion this year, he said, but the final figure is expected to range between $11.5 billion and $12 billion.

Mahdavi-Abhari added that since the 2010s, the petrochemical industry has generated more than $170 billion in exports, with less than one-hundredth of 1% going uncollected. Given its significant role in the national economy, he said, the industry requires smart support. Energy remains Iran’s main advantage and must be used effectively.

Plan Targets 23% Growth in Non-Oil Exports

Mahdavi-Abhari said the petrochemical industry is not only an energy consumer but also contributes to gas field development, energy efficiency initiatives and power generation.

He said investments by petrochemical companies in gas fields and efficiency projects are underway and that a significant share of the country’s added power capacity — including about 4,500 megawatts of new electricity by June next year — will be supplied by the sector.

Referring to export duties outlined in the Seventh Development Plan, Mahdavi-Abhari said while the plan calls for annual non-oil export growth of 23%, imposing duties on raw and semi-processed exports effectively penalizes the country’s largest exporters. Developing the petrochemical value chain requires capital, time and technology, he said, and punitive measures cannot accelerate that process.