Oil Ministry Keeps Petrochemical Supply Chain Intact During Wartime Disruptions

Date: 21 June 2026 - 23:05

News ID: ۱۵۱۱۶۹

TEHRAN – Oil Ministry and the National Petrochemical Company (NPC) prevented major supply shortages for downstream industries during the country’s recent conflict by managing domestic supply, restricting exports, stabilizing prices and accelerating the recovery of damaged production facilities.
The petrochemical industry is a critical pillar of Iran’s economy, supplying raw materials to thousands of manufacturers across sectors including plastics, packaging, automotive production, household appliances, construction, medical equipment and consumer goods. Any disruption to petrochemical production can quickly ripple through industrial supply chains and consumer markets.
The importance of maintaining that supply became evident during what Iranian officials describe as the “Third Imposed War,” when attacks targeted parts of the country’s energy and petrochemical infrastructure, particularly facilities in the petrochemical hubs of Mahshahr and Asaluyeh. The strikes raised concerns about the availability of feedstocks for downstream industries that depend on petrochemical products for manufacturing plastics, packaging materials, polymer components, hygiene products and medical supplies.
Following the attacks, prices for some plastic and packaging products increased in the market. However, officials said much of the price pressure stemmed from wartime uncertainty, concerns about prolonged production disruptions and precautionary market behavior rather than actual shortages of raw materials.
Petrochemical product prices remained tied to pre-war benchmarks under government directives. According to Muhammad Motaghi, NPC’s director of downstream industry development, the policy of maintaining fixed base prices for petrochemical products remains in effect beyond its original expiration date.
Officials also noted that higher transportation costs, logistics expenses, labor costs and financing challenges affected nearly every sector of the economy during the conflict, contributing to increased prices for finished goods.
The Oil Ministry and NPC had prepared contingency plans before the attacks occurred. Under passive defense requirements, the petrochemical sector developed multiple supply scenarios to ensure continued deliveries to downstream industries in the event of production interruptions.
An emergency committee comprising representatives from NPC, the Ministry of Industry, Mine and Trade, the commodity exchange and consumer protection authorities identified and prioritized essential products. Measures included managing allocations of strategic materials, increasing supplies of high-demand products, building inventories at storage facilities across the country and securing feedstocks for sensitive sectors such as medical equipment manufacturing.
These preparations helped maintain deliveries to downstream industries even after the attacks. Existing inventories held by manufacturers and previously accumulated raw-material stocks also eased pressure on the market.
Ensuring domestic supply became the government’s primary objective. Products needed by local industries were removed from export lists, petrochemical offerings on the commodity exchange were increased and quota management was tightened.
The Ministry of Industry also reviewed purchasing quotas to curb non-productive demand and improve market efficiency. At the same time, authorities facilitated imports of selected raw materials by petrochemical companies, traders and downstream manufacturers to address potential shortages.
According to Hassan Abbaszadeh, deputy oil minister for petrochemical affairs, temporary export restrictions were imposed on certain products following the ceasefire to ensure domestic demand was fully met. Export permissions have since been restored for products with surplus inventories, while restrictions remain in place for products facing supply constraints.
Alongside market management measures, restoration work at damaged petrochemical facilities began immediately after the attacks. Specialized reconstruction committees were established within NPC, and three-month recovery plans were developed to bring affected units back online.
Many damaged petrochemical complexes in Mahshahr and Asaluyeh are gradually resuming operations, although not all facilities have yet returned to full production capacity. Officials said domestic supply remains the priority during the recovery process.
Abbaszadeh said approximately 38% of the production capacity that had been lost or affected by the attacks has already been restored. The first phase of recovery is being implemented under a two-month plan, with additional facilities expected to return to service in the coming months.