Lawmaker suggests to reduce base oil price in 2018 budget

Baku. 7 November. REPORT.AZ/ It is purposeful to take the base oil price lower in the 2018 state budget draft in Azerbaijan.

Report informs, member of Azerbaijani Parliament (Milli Majlis) Siyavush Novruzov suggested while discussing the 2018 state budget package at today’s joint meeting of five parliamentary committees: “The money generated from oil should be accumulated at the State Oil Fund.“

“Why we are increasing oil price in the budget? Both Ministry of Economy and Ministry of Agriculture say that we have development. If we have revenues in this fields why we are increasing oil price in the budget? On the opposite by lowering it we can achieve further developments. We don’t know how political relations will be and how oil price will change. Oil price is related with policy,” said lawmaker.

"Instead of coming together and change oil price in the state budget, we could now determine oil price at $ 25-30/barrel. That means may be accumulated at State Oil Fund and we can spend them when needed. If to consider the last year, a year before, we will see that at that time we started to look for new development fields. Agriculture has been developed. If the work continues with rapid speed, are we supposed to instantly direct revenues generated from oil to budget?! So that it can be spent left and right,” he said.

Base oil price in the 2018 state budget draft in Azerbaijan will be taken at $ 45/barrel. This is more by 12,5% or $ 5/barrel than base oil price in 2017 state budget.