Iran to set budget on $40/barrel price

Iranian government will revise the oil price set in its current budget bill down from $72 to $40/barrel.

Finance and Economic Affairs Minister Ali Tayyebnia said that the oil price in budget bill would be corrected, Mehr News Agency reported on Jan.15.

The Iranian government submitted the budget bill for the next fiscal year, which will start on March 2015 to be approved in Parliament.

Naser Mousavi Largani, a member of Economic Commission in Iran’s Parliament told Trend Jan.15 that collapsing oil prices is as a lever to put pressure on Iran, but oil prices are expected to rise in 2015, maybe to around $60/barrel.

While responding to a question about the possible deficit in budget this year, the MP said that Iran does not suffer lack of financial resources so far. However he confirmed that Iran has faced problems financing some constructional projects.

Commenting on next year’s budget, he said that the Islamic Republic has seriously decreased its relay on oil export for next year. He also forecasted that the oil price would increase, saying the low price of oil prices is a plot against the Islamic Republic.

“However the plot is foiled and they understand that the Islamic Republic can handle the issue,” he said.

Iran plans to export 1.3 million barrels per day of crude oil (including gas condensate) during next fiscal year.