Sale of oil in excess volumes damages Iran’s domestic production: MP

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One of the solutions to increase exports of oil and petrochemical products by İran is to pay attention to developing petrochemical industry that can return foreign currency revenues and support domestic production and employment, member of the parliament’s Mine and Industry Commission Nader Ghazipur told Trend.

“The 2015 reports show that Iran’s oil products exports have started to decline. Meanwhile, two major elements have challenged the exports of oil products. First is the excessive rise of domestic consumption that limited storage and exports and the other is the consistent crude oil sale approach that limits development of oil downstream industries,” he said.

Ghazipur noted that Iran has been active in oil exploration for 104 years, therefore it’s not right to still continue crude oil sale. “Downstream did not have significant progress and we are still importing oil pipes.”

“Selling crude oil damages the domestic production. Developing petrochemical industry can prevent crude oil sale and allow to produce high-value products that enhance domestic production,” he said.

The MP noted that one of the solutions to reduce crude oil sale in the sector is to cut the exports profit. “If we manage to reduce the attractiveness of crude oil exports, investors will become more attracted to downstream investment. It would enhance domestic production and employment.”

Continuing to sell crude oil by in the current excessive volumes and lack of attention to investment in downstream industries have caused the fall of petrochemical products exports and underdevelopment in domestic production, said the MP. “It is even possible that in upcoming years we will import more petrochemical products than export.”