Baku: ‘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.

According to Azeri-Press News Agency, Kazimov stated that the $65 oil price set in next year’s budget represents the average annual price. He emphasized that the $65 figure reflects the average annual oil price, and fluctuations throughout the year are expected. Oil prices may drop to $40 or rise to $80, but the crucial factor is maintaining an average annual price of $65. Historically, from 1996 to 2024, the average oil price has been $60, with the lowest point 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 these figures, a current account surplus of $3 billion is anticipated. Kazimov noted that internal assessments indicate that if the oil price is $10 lower than the budget estimate, the state budget impact would be 345 million manats, which is not seen as a significant issue. He mentioned a preference for planning the budget at $50 per barrel, but stressed the importance of having a properly functioning system from a planning perspective.