Oil Minister Dismisses FOB Pricing for Refinery Feedstocks Supply

TEHRAN ( Iran News ) – Iran’s Oil Minister Bijan Namdar Zanganeh said the price of feedstocks supplied to refineries across the country would no longer be calculated using the free on board (FOB) system that is widely used in energy trade in the Persian Gulf region. “Currently the Persian Gulf FOB prices are no longer consistent with realities of the Iranian feedstocks market,” said Zanganeh on Thursday, adding that the pricing formula used for supply of feedstock to refineries had been “corrected”, Press TV reported. The minister did not elaborate but stressed that the new pricing mechanism would take into consideration both the interests of the government, as the main producer of crude, natural gas and condensates consumed in refineries, as well those of the refiners.