News ID: 262735
Published: 0401 GMT December 09, 2019

Iran's draft budget eyes oil sale at $50 per barrel: Official

Iran's draft budget eyes oil sale at $50 per barrel: Official

Iran’s budget for next year expects an oil price of $50 a barrel, head of Planning and Budget Organization Mohammad-Baqer Nobakht said at a press conference on Monday.

Nobakht was quoted as saying by SHANA that the government had prepared the budget on expectations of selling one million barrels per day (mbd) of crude at an average price of $50.

President Hassan Rouhani presented the draft public budget of nearly $39 billion to Parliament on Sunday, saying it was designed to counter US sanctions regime by limiting dependence on oil exports.

Meanwhile, IRNA said in a report that the maximum income expected from direct sale of oil in the next year’s budget would be around $3.4 billion, while taxation would generate more than $14.5 billion in revenues.

That means Iran has significantly reduced its dependence on crude income, a source once seen as a staple of the government’s budgetary decisions.

Experts believe the sanctions, enacted since November last year and after Washington withdrew from an international agreement on Iran’s nuclear program, have helped Iran diversify its economy away from oil.

They also say that the US embargo on the direct sale of Iranian oil has encouraged more investment in the downstream section of the nation’s oil industry as exports of petrochemicals keep surging despite massive pressures on Iran.

The Parliament is expected to pass the budget bill, meant to regulate revenues and spending during the Iranian calendar year of 1399, (staring March 20, 2020).

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