The First Vice President has announced a new formula for subsidized diesel pricing for mines and the upstream oil industry’s diesel.
According to the regulations of Paragraph P, Article 14 of the Five-Year Progress Plan of the Islamic Republic of Iran, the new directive has been amended by Mohammadreza Aref, the First Vice President.
In this context, the subsidy for the sale of diesel to major mines is set at 90% compared to the base year (2023), with the provision that it will decrease by 10 percentage points annually, reaching a minimum of 50% by the end of the program.
Furthermore, according to this directive, the subsidized diesel rate for the upstream oil and gas industries is set at 10% of the purchase price from refineries in the first year of the law’s implementation. Starting from the following years, the rate will increase by 15 percentage points annually, reaching 70% of the refinery purchase price.
Additionally, if the consumption exceeds the allocated share of subsidized diesel, the excess diesel will be priced at the refinery purchase price.
Under this directive, the subsidy for the sale of diesel to the upstream oil and gas industries is initially set at 90% compared to the base year of 2023, and it will decrease by 15 percentage points annually, reaching a minimum of 30% by the end of the program.
Moreover, if the consumption exceeds the allocated subsidized diesel, the excess will be priced without subsidy.
