Title: “Refinery Sector Faces 50% Profit Decline Amid Aging Infrastructure and Rising Challenges”
A Call to Strengthen Iran’s Refinery Industry
Nasser Ashouri, Secretary of Iran’s Refinery Industry Association, has raised concerns over a 50% drop in refinery profits within just one year, citing aging infrastructure, unpaid government dues, and rising operational risks as key challenges.
Speaking at a press conference, Ashouri emphasized the critical role of refineries in national resilience, particularly during crises. “During the 12-day war, refinery workers showed immense sacrifice, boosting gasoline and diesel production to ensure self-sufficiency,” he stated.
Aging Infrastructure and Safety Risks
Ashouri highlighted that many refineries are over 120 years old, leading to depreciation and loss of operational efficiency. “Unlike advanced nations that modernize refineries, we face heightened risks due to outdated equipment,” he explained.
Tragically, 20 refinery workers have lost their lives in accidents over the past two years—a consequence of relying on manual labor where automation, such as robotic firefighting systems, could enhance safety.
Production Gains vs. Rising Consumption
Despite challenges, Ashouri noted significant production growth: from 57 million liters to 120 million liters of gasoline and diesel over nine years. However, smuggling and inefficiencies in the auto industry have led to consumption outpacing supply, disrupting market stability.
Regulatory and Pricing Disputes
Ashouri criticized unlawful pricing interventions, stressing that refinery pricing should follow legal frameworks. He also addressed tensions between government mandates and corporate autonomy, stating, “No government resolution can override the legal authority of state-owned companies.”
Mini-Refineries: A Strategic Solution
To bolster resilience, Ashouri advocated for organizing mini-refineries—smaller, 40,000-barrel units capable of supporting exports in peacetime and aiding the government during emergencies. “If a major refinery is compromised in war, mini-refineries can prevent fuel shortages,” he explained.
Upcoming Developments
Ashouri confirmed that Phase 1 of the South Pars refinery expansion is set to become operational by year-end, marking a step toward modernization.
Final Note: While profits decline, Iran’s refinery sector remains pivotal to energy security, demanding urgent investment and policy support to sustain growth and safeguard workers.
