Oil price decline will not trouble Iran

Tehran, Dec 17, IRNA – Even if the declining trend of oil prices continues by mid-March 2015, the government will have no problem running the country, said the government spokesman.
  Mohammad Baqer Nobakht, who is also vice president for strategic planning and supervision, added that despite the continuous decline in oil prices, the government has allocated $6.87 billion to development projects.

According to the official, average oil price in the fiscal year starting March 21, 2015, is expected to amount to $82 per barrel.

However, to be on the safe side, the government has based the next year’s budget on an oil price of $72 per barrel.

“Currently, oil revenues account for only one-third of the country’s budget. I can guarantee that Iran has enough natural resources that will enable the government to cover expenditures conveniently, independent of oil revenues,” he said.

“The pressure of oil price decrease will backfire and inflict losses on countries responsible for the decline. Arab countries that help reduce prices by boosting production and offering special discounts should know that they will also be pressurized by the drop in oil prices.”

The government spokesman noted that political issues and decisions are affecting oil prices.

He said that in the year starting March 21, 2015, government monetary resources will only grow by 6.2 percent, but the administration of President Hassan Rouhani has increased the research budget by 34 percent, which shows the importance attached to this sector.

Nobakht stressed that the country needs an economic growth of 8 percent next year.

“To promote economic development, the government is required to stimulate an economic growth of 8 percent. In the fourth and fifth five-year economic development plans (2005-15), oil revenues exceeded $800 billion. However, the country’s economic growth did not cross 4.5 percent,” he said.



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