[53261] Crisis in the Iranian motor oil market: severe shortage and price surge

Crisis in the Iranian motor oil market: severe shortage and price surge

The motor oil market in Iran is in a period of intense turmoil, according to a report by the آخرین خبر مشهد channel. Yazdi-Zadeh, head of the Motor Oil Union in Mashhad, stated that a severe shortage is being felt in the market, which has caused a price increase of about 50% in the free market. According to him, the main reason for the situation is a drop of about 70% in production compared to last year.

According to the report on آخرین خبر مشهد, four major refineries — Behravan, Iranol, Sepahan, and Naft Pars — have stopped their sales. In addition, the companies 'Iranol' and 'Naft Behravan' announced official price increases of 35% and 56% respectively. Yazdi-Zadeh noted that packaging costs have soared, with the price of a 20-liter container reaching 800 thousand tomans, which led to proposals to switch to bulk supply to terminals.

At the same time, the channel پیام ایران presents a contradictory picture to the official reports. According to پیام ایران, just last week, the secretary of the Vegetable Oil Union in Iran denied in a report to the 'Tasnim' agency that there was any price increase.

The gap between the establishment's denials and the reality on the ground, as reflected in the words of the head of the union in Mashhad, indicates significant instability in the Iranian supply chain. Experts in the field predict that the trend of rising prices is expected to continue in the near future.