“If the oil price is set at $60 instead of $65, it could cause confusion among the public,” said Chairman of the Central Bank of Azerbaijan Taleh Kazimov during the meeting of the Parliamentary Committee on Economic Policy, Industry, and Entrepreneurship discussing the “State Budget Package of the Republic of Azerbaijan for 2026,” APA reports.
He stated that the $65 oil price set in next year’s budget represents the average annual price: “The $65 figure reflects the average annual oil price. If the price were set at $60 instead of $65, it could cause confusion among the public. The average annual price is $65. During the year, oil may drop to $40 or rise to $80. What matters most for us is that the average annual price remains at $65. From 1996 to 2024, the average oil price has been $60, with the lowest level recorded during the pandemic at $43.2.
The Central Bank’s forecast for 2026 estimates the oil price at $64 and the gas price at $288. Despite this, a current account surplus of $3 billion is expected. On the other hand, this reflects our internal assessment. If the oil price is $10 lower than the budget estimate, the impact on the state budget would be 345 million manats, which is not a major issue. Of course, we would also prefer the budget to be planned at $50 per barrel, but from a planning perspective, the system must function properly,” Taleh Kazimov said.
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