Incomes from Difference between Export and Inner Oil Price to Azerbaijani State Budget Increases Greatly

Oil&Gas Materials 21 October 2008 21:21 (UTC +04:00)

Azerbaijan, Baku, 21 October / corr Trend I.Khalilova / In January to September 2008, SOCAR (Azerbaijan State oil company) transferred AZN 171, 877,6 000 to the country's budget from difference between contract (export) price and interstate wholesale price, the Ministry of Taxes said.  In accordance with new mechanism, which was introduced within the frames of correction of budgetary prognoses, SOCAR transfers 30% of this difference to treasury, whereas these data of allocation were realized on the level of 25%.

AZN 40,390,6 000 was transferred only for September, AZN 11, 907,1 000 - for August and AZN 4,007,1 000 in July in this line.

Change of ratio in the Ministry of Finances is connected with increase of income from oil. World oil prices also influence on increase of volume of income and income to the budget increase accordingly.

75% of income from oil are provided to transfer to the State Oil Fund (SOF) at increase by $70 in state budget (forecasting of budgetary indices is realized on the basis of price of $50 earlier).

Whereas, mechanism of allocations at oil price from $40 to $50 is indicated to 2008. In that case, 50% of additional income are transferred to SOF.

In 2008, specific weight of Azerbaijani oil income increase in connection with acceptable market situation of oil prices in world markets, that will lead to increase of incomes to country's budget. It was reflected in corrected budgetary prognoses. According to these prognoses, oil sector in this year should provide income in the amount of AZN 6.7bln to the country's state budget (taking into account transfers from the State Oil Fund in the volume of AZN 3.8bln), that it made up 63.9% of total budgetary income. However, these estimations were realized without taking into consideration the events in Georgia and explosion of Baku-Tbilisi-Ceyhan in Turkish territory, which led to reduction of oil export.

Exchange rate on 21 October is 0.8095 AZN/USD.

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