Expert: Country’s income increases when oil prices rise

19.01.2022,17:21


January 19, Fineko/abc.az. “When oil prices rise, our country’s earnings increase. That is, State's revenues are high – the manat is stable. If there is demand for manat, the State can additionally use reserves and maintain it in stable condition."

ABC.AZ reports that this was stated by Ilham Shaban, the head of the Oil & Gas Research Center, when speaking about the benefits of rising prices for Azerbaijani oil to $90 a barrel for the country's economy.

Shaban points out that last year the average export price of Azerbaijani oil was $71:

 “At the expense of these 71 dollars, according to the figure published by the Ministry of Economy, the State Budget received AZN 2.1 bn from the oil sector. In fact, in the budget forecasts, more than 50% of revenues were received from the oil sector. Secondly, if in 2020 only AZN 4 bn of oil and gas finances were received by the State Oil Fund, now only AZN 6 bn were received from the Azeri-Chirag-Guneshli field. That is, high oil prices definitely lead to an increase in the inflow of foreign currency into the country. Thus, when oil prices rise, government revenues also grow. That is, the state's revenues are high - the manat is stable. When there is a demand for manat, the State will be able to additionally use its reserves and keep it stable”.