Purchase Procedure for Iranian LPG and Petroleum Products

Purchase Procedure for Iranian LPG and Petroleum Products

This guide explains the standard purchasing process for Iranian LPG and other petroleum products supplied by our company.

1. Product Availability

LPG in Iran is produced by approximately ten major refineries and gas processing plants. Each producer periodically issues an official sales offer specifying:

✅ Product availability

✅ Loading period

✅ Minimum and maximum purchase quantity

✅ Delivery location

✅ Delivery terms (Incoterms)

✅ Pricing formula and applicable discount

As new offers are released regularly, buyers are encouraged to review the latest available offers before placing an order.

The latest Iranian LPG offers are available at:

https://mizanest.com/iranian-lpg-offers-and-prices/

2. Pricing Method

Iranian LPG export prices are generally based on the Saudi Aramco Contract Price (CP).

Each official offer includes a discount from the applicable CP. Depending on market conditions and the producer, this discount has historically ranged from approximately USD 10 to USD 200 per metric ton.

Example:

Saudi Aramco CP – USD XX/MT

3. Delivery Terms

Depending on the producer and the specific offer, delivery may be available under one of the following Incoterms:

✅ EXW

✅ FCA

✅ FOB Iranian Ports

Some offers are open to all international buyers, while others are restricted to specific destination countries.

4. Price Competition

The published discount represents the maximum available discount.

If total buyer demand is equal to or lower than the offered quantity, purchases are generally completed at the published discount.

However, when demand exceeds available supply, buyers must submit their Target Price (maximum acceptable purchase price).

Our trading team will participate in the purchasing process without exceeding your authorized Target Price.

5. Order Placement

To begin the purchasing process, buyers normally provide:

✅ Product specification

✅ Required quantity

✅ Destination country

✅ Preferred delivery term

✅ Company details

Once confirmed, we proceed with order registration according to the relevant producer’s procedures.

6. Payment Procedure

Unless otherwise specified in the producer’s sales announcement, the standard payment procedure is:

✅ 10% advance payment

✅ 90% payment upon issuance of the refinery’s Proforma Invoice

Different producers may occasionally apply different payment terms, which will be clearly stated in the relevant sales offer.For some refineries, the payment terms may be 5% advance payment and 95% payable upon issuance of the refinery’s Proforma Invoice.

7. Important Notes

• All sales are subject to the official terms and conditions announced by the producing refinery.

• Product availability, loading schedule, pricing formula, discounts, and payment terms may change from one sales announcement to another.

• Buyers are advised to review the latest official offers before making a purchasing decision.

•Some producers require an advance payment of 110% or 120% of the purchase value. Any excess amount resulting from underloading or the absence of applicable penalties will be refunded to the buyer or, upon the buyer’s request, retained as a credit for future purchases. This requirement is always clearly stated in the relevant sales offer.

Our team is available to assist buyers throughout the purchasing process, from offer selection to final loading.