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MP: Iran's next year Budget is based on oil price of $19 per barrel

A member of Majlis Energy Commission said on Sunday that the price for each barrel of oil is based on $19 in the 1383 budget (starts March 20), IRNA reported from Tehran.

Ali Yari said the price was derived from oil prices this year and expectation of reduction of oil consumption in the international markets next year.

Speaking to IRNA, he added "if Iraqi oil enters the market the chances are that the indicated price will decline."

He said that Iran has been striving to boost its oil production capabilities and "is therefore entitled to ask for higher OPEC production quotas in the future."

Yari said that Iran OPEC quota has to increase given that before the Islamic revolution the figure was six million barrels per day (bpd) compared to 3.5 million bpd today.

He also characterized the proposed 30 percent hike in the price of gasoline next year "as a cause for adverse public reaction given its inflationary effects on other prices."

The MP from Ilam referred to the concurrent Majlis elections and proposed hikes in next year's prices as a likely factor discouraging the people from to taking part in the election.

He further alluded to the necessity for carrying out structural changes rather than price increases as suitable solution to the economic vows.

An oil industry Official said here last month that the issue of gasoline rationing is postponed until at least the end of the year.

Deputy Head of National Oil Derivative Refining and Distribution Company Hossein Kashefi said the imports of gasoline is continuing on credit.

He told reporters that the current trend of production, imports and distribution of gasoline will continue for the time being. "The repairs of refineries and pipelines will be delayed to prevent a gasoline shortage from taking place."

He also said the level of gasoline consumption is in a critical stage. If the 10 percent growth of gasoline consumption continues next year, its consumption will top 62 million liters and its imports about 24 million liters daily, the oil industry official stated.

Kashefi said that the gasoline imports costs top dlrs 1.5 billion, "which if the current trend continue the figure will increase to dlrs 2.2 billion next year."

The official figures indicate that the daily consumption of gasoline in Iran rose by 11.7 percent to 56.3 million liters in the first seven months of the current year.

Iran's gasoline output had been 38.5 million liters a day since the start of the year with imports standing at 15.2 million liters a day in the period.

He added that gasoline consumption showed six percent growth a year in the Third Five-Year Economic Development Plan (2000-05).

... Payvand News - 1/26/04 ... --

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