Regarding the issue, Azer Badamov, Deputy Chairman of the Milli Majlis Committee on Economic Policy, Industry, and Entrepreneurship, shared his views in a statement to İqtisadiyyat.az.
He stated that, according to information as of April 1, oil prices in the world market have sharply increased, with 1 barrel of Azerbaijani oil of the “Azeri Light” brand trading at 132.35 US dollars, and “Brent” brand oil trading around 127.24 US dollars:
“There are also expectations that this price could even increase to 200 dollars in the near future. When we talk about how to spend the revenues obtained from the increase in oil prices, we must first pay attention to the reasons for the increase.
The sharp increases in oil prices are directly related to restrictions in the Strait of Hormuz and the US-Israel-Iran war. However, no one can predict how long the war will last and how the fate of relations concerning the Strait of Hormuz will be resolved. That is, if the war ends in the near future, oil prices are expected to fall rapidly again. From this perspective, we can say that today's increases are temporary”.
The deputy emphasized that it is too early to bring up issues related to the use of revenues and the revision of the budget before stability is established in oil prices:
“However, every revenue generated from the increase in oil prices today is accumulated in the State Oil Fund of Azerbaijan and increases the state's foreign exchange reserves. If the prices of energy carriers remain high in the long term and the inflow of additional revenues into the budget becomes dynamic, then, naturally, it will be possible to revise the state budget, expand social programs, and implement planned programs more quickly.”