As per the 2019-20 fiscal budget bill, a barrel of crude is calculated at $54, Oil Minister Bijan Namdar Zanganeh told the ministry’s website Shana on Wednesday.
“The government is doing its best to curb its reliance on oil revenues. This is a long-term plan,” he said, underscoring the demand of academia and most economic analysts that dependence on oil export earnings is a luxury the nation can no more afford.
Drawing an analogy between Iran and its neighboring states, the minister said, "Now Iran is a country in the region that is the least dependent on oil."
He recalled that “in the 2018-19 budget oil revenues accounted for $27 billion, but that has been cut to $21 billion for next year – a 28% decline.”
President Hassan Rouhani submitted the $38 billion budget bill for fiscal 2019-20 to the Majlis on Tuesday.
US West Texas Intermediate crude were up 13 cents at $42.66 per barrel on Wednesday. Brent crude oil futures were down 29 cents, or 0.57%, at $50.18 a barrel and earlier fell to the lowest since July 2017.
"The price of energy carriers will not change in the next fiscal year," the minister said.
According to Zanganeh, revenue from the key petrochemical sector is expected to reach $18 billion in 2019, of which $12 billion will be from exports.
"Investments in petrochemical sector will reach $9 billion next year," he told reporters.
About crude exports he said those who bought oil on the bourse have exported their cargo and there is no problem in this regard. He did not elaborate.
Iran began selling crude oil to private companies in October ahead of the new US sanctions on important sectors including oil and banking.
