Fragile Stability in Edible Oil Market Signals Shortage Risk from October

Mr. Siamak Rabiei, secretary of the Iranian Edible Oils and Fats Association, warned that if the foreign exchange for crude oil imports is not paid by the end of September, we will face a shortage from October. He considered the main reason for the problems in the oil market to be instability in foreign exchange allocation and lack of clear planning.

Rabiei emphasized that the private sector has the ability to fully meet the country’s needs, but government interference and quotas prevent this. He called for the elimination of preferential currency for crude oil imports and its transfer to the official foreign exchange market. According to him, this will save the government up to 87 trillion Tomans annually and can be returned to the people in the form of cash subsidies.

Also, price realization will reduce smuggling, grow domestic production of oilseeds, and increase transparency and trust in the market.