Gov’t plans to raise oil price set in budget

The Azerbaijani government has decided to increase the price of oil envisioned in the projections on the 2008 budget, Finance Minister Samir Sharifov has said.

Under the proposed changes, the price may be raised from the current $50 to $70 a barrel, he told a parliamentary commission meeting on Wednesday.

“The price in world markets currently exceeds $100. I therefore believe this change should be made,” the minister said.

Sharifov said the measure would allow to boost budgetary contributions of the State Oil Fund, the body that holds revenues from the exports of oil, from 1.1 billion manats to 3.8 billion manats ($4.57 billion).*