Azerbaijan, Baku, Dec. 24 / Trend , I.Khalilova /The transfers by SOCAR (State Oil Company of Azerbaijan) into the state budget of the country from the difference between the contract (export) price and domestic wholesale pieces made up AZN 178,801,000 from Jan. to Nov., the Ministry of Taxes.
In accordance with new mechanism introduced within the framework of correction of budget forecasts, SOCAR transferred 30% of this difference to the state budget against 25%, transferred earlier.
A total of AZN 1,719,000 was transferred on the line to the state budget in Nov., AZN 5,132,500 - in Oct., AZN 40,390,600 - in Sept. AZN 11,907,100 in Aug. and AZN 4,007,100 in Jul.
The changes in the system the Finance Ministry are connected to increase of incomes from the oil sector, whilst dramatic drop of transfers in Nov. is explained with world oil prices.
On the background of cut of demand, consumer-countries, including the United States, China and Japan, have lost about 60% from oil prices since early 2008 and about 73% - since Jun., when they reached record level - $147 per barrel.
The state budget for 2008 envisaged transference of 75% oil incomes with exceeding the already existing $70 price (before the budget forecasts had been held at $50) to the State Oil Fund of Azerbaijan (SOFAZ). Before 2008, the mechanism envisaged the assignments with the oil prices at from $40 to $50. In this case 50% of additional assignments had been transferred to SOCAR.
Specific weight of Azerbaijan's oil incomes considerably rose as compared to early 2008 because of the current state of oil prices at world markets, which led to rise of transfers to state budget and was reflected on correction of budget forecasts. According to the forecasts for 2008, the oil sector was to provide AZN 6.7bln incomes to the country's state budget (taking into account the transfers from SOFAZ in the amount of AZN3.8 billion), which made up 63.9 percent of total revenue. However, these calculations were carried out without taking into account the developments in Georgia and the explosion at the Turkish part of Baku-Tbilisi-Ceyhan pipeline that led to a decline in oil exports. Despite this, income part of public budget is fulfilled with advancing forecasts. Therefore, expected transfers may be realized from the oil sector in 2008.
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