TEHRAN – Iran has ramped up its gasoline production to 120 million liters per day in the second Iranian calendar month of Ordibehesht (started on April 21), up from 107 million liters the previous month, even as the country’s refining industry reports a dramatic collapse in profitability, a senior industry official said on Tuesday.

Speaking at a press conference, Nasser Ashouri, Secretary-General of Iran’s Oil Refining Industry Employers Association, said the production boost comes despite the sector facing zero profitability in the previous year. “The refining industry, a key pillar of the national economy, has seen its profit margins vanish entirely, yet it continues operating without interruption,” he stated.

Ashouri said the combined value of Iran’s oil refineries exceeds $100 billion, but warned that without policy support from the government and parliament, the industry's financial health and future investments are at risk. “We need facilitation, not obstruction. This industry must remain viable,” he said.

He criticized the government for treating the private sector as a competitor, urging it instead to foster trust so investors feel secure putting capital into production.

According to Ashouri, the profitability of the country’s 10 refineries plunged in the second half of the previous year, with total earnings dropping to around 4.3 quadrillion rials (approximately $8.6 billion). He warned that 18 key refinery development and quality-upgrade projects worth nearly $18 billion are now in jeopardy due to the sector's financial freefall.

Ashouri attributed the crisis to the Oil Ministry’s failure to implement a revised pricing formula for feedstock and petroleum products. “Because the new pricing regulations have not been enforced, refinery financial statements for the previous year have not yet been finalized,” he said.

EF/MA