MP proposes $80 for oil in next year budget

Tehran, Nov 24, IRNA – Head of the Plan and Budget Commission of Majlis Gholamreza Tajgardoon referring to the gradual fall of oil price in international markets and its impact on Iran’s next year budget said: “Our proposal for the oil price in the next year budget is about $80 per barrel.” Speaking to IRNA, the MP said it seems that the oil price fall will continue and return to previous prices is something beyond prediction in the short run. He said sudden drop in oil price in international markets forced oil rich countries to take steps in formulation of their next year budget bill with more prudence, adding that OPEC members are decisive to set $60 to $80 for each barrel in their budgets. Head of the Majlis Plan ad Budget Commission further remarked that although this year budget was formulated on the basis of $100 for each barrel of oil, with regard to the dramatic drop in oil price in recent months inclusion of expensive oil in the next year budget would entail economic risks and consequences. Stressing that a specific price cannot be predicted for oil in the next year budget bill, he said it seems that figures $75 to $80 would be reasonable. He said in case of oil price rise the surplus can be deposited in the National Development Fund, adding that if the next year budget is formulated according to high oil price there would be the possibility of budget deficit. Meanwhile, economic experts believe that with regard to the declining oil prices an OPEC emergency session together with reduction of production share of OPEC members can prevent collapse of oil prices./end