Iran bases budget on oil price of $37.5 per barrel 2009-01-04 21:43:08   Print

    TEHRAN, Jan. 4 (Xinhua) -- Iran's Oil Minister Gholam-Hossein Nozari said here on Sunday that Iran's government would base its budget for the next calendar year on oil prices of over 37.5 U.S. dollars per barrel, Iran's satellite Press TV reported.

    "The government and the parliament have agreed on setting an oil price of 37.5 U.S. dollars a barrel in the next year's budget bill," Nozari said, adding that "this price has been set in view of the oil market fluctuations. We should also be careful not to lose our main customers."

    The next Iranian calendar year starts on March 21, 2009.

    Due to the sharp downward spiral in oil prices, it is expected that Tehran's new budget set-up falls short in the country's strategic economic plans.

    Crude oil income accounts for 80 percent of Iran's revenue, which makes the country's economy vulnerable to such oil price fluctuations.

    Iran's President Mahmoud Ahmadinejad has refuted the claims saying that falling oil prices and the due fluctuations will have serious impact on the country's economy, maintaining that "even if they reach 5 dollars a barrel, the country's economy will not be affected."

    After being elected as Iranian president in 2005, Ahmadinejad vowed to reduce Iran's dependency on oil revenues and reiterated the claim as a part of his new economic reform plan in mid 2008.

Editor: Bi Mingxin
Related Stories
OPEC weekly oil prices again dive below $40
UAE energy giant to cut oil production from 2009
Home Business
  Back to Top