Slow decline in refining industry; Tehran and Bandar Abbas refineries under pressure from production decline

According to an exclusive report by Energy Press, the refining industry entered the second half of the year in Mehr 1404 with a slow setback and without significant jumps. This trend was repeated last month, and the two refineries in Tehran and Bandar Abbas had a decrease in production.
On the one hand, some refineries were able to maintain the improvement trend in monthly production and sales, and on the other hand, some units were on a downward path with a noticeable drop in performance.
A review of the Mehr data shows that, contrary to the general perception of the booming refining industry, a significant part of the industry is experiencing operational pressures; pressures that lead to a decrease in production, a drop in sales, and a decrease in the margin of product supply security. In such circumstances, evaluating the performance of refineries becomes more important, especially since Mehr is one of the months when domestic demand and fuel consumption patterns can provide a more realistic picture of the supply situation.
In general, Mehr was a point that brought together two different images of the refining industry; A picture of the gradual growth and return of capacity in refineries such as Isfahan, Lavan and Shiraz, and another picture of a significant setback in Tehran and Bandar Abbas, which have contributed the most to the overall decline in industry performance.
This divergence in performance shows that the refining industry is not yet on a sustainable path and the gap between successful companies and those facing technical and managerial constraints is deepening. In such circumstances, the continued declines in the Tehran refinery and the simultaneous decline in production and sales in Bandar Abbas are a warning that cannot be ignored. The future of the product market in the coming months will depend on the industry’s ability to overcome these constraints and return to a sustainable growth trajectory.