Oil Price in Iran's Proposed Budget Bill Announced

The 1403 (March 2024-2025) budget bill indiactes that crude oil income is predicted to be IRR 5.54 quadrillion (~US$11.08 billion). According to Minister of Economic Affairs and Finance and the administration’s economic spokesman, Ehsan Khandouzi, oil sales are estimated at 1.35 million barrels per day at an average price of €65.

Like the current year’s budget, the next year’s proposed budget requires the government to pay 40 % of its oil, gas, and gas condensate revenues to National Development Fund (NDF). The data provided in the next year’s budget bill indicate that the government is taking major steps to distance the economy from oil, as a big portion of the incomes are set to be gained from sources other than oil and gas. Oil incomes in the next year’s budget bill are estimated to be 6.2 % less than the ceiling allowed in the budget law, accounting for only 22.8 % of the total incomes. On the other hand, the share of tax revenues is twice the revenues from oil and gas sales, which means changing the budget approach from oil revenues to sustainable revenues. - Shana, Tehran Times