PM advisor proposes a price for a barrel of oil in the budget

Economy

7-05-2022, 23:11

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INA - LIVE UPDATES - BAGHDAD

Technical Adviser to the Prime Minister Haitham al-Jubouri confirmed on Saturday, that the legislation of the oil and gas law has become an urgent necessity to end the intersections between the federal government and the Kurdistan Regional Government in the oil file, while he pointed out that the government is able to send 2022 budget to the Parliament if it obtains a parliamentary vote authorizing it to set the price per barrel of oil.

"The Federal Court's decision of the unconstitutionality of the oil and gas law in KRG obligates all parties concerned to implement it," said Al-Jubouri to Al-Iraqiya News TV, followed by the Iraqi News Agency - INA.

He added, "There is no way or option for the federal government and the Kurdistan Regional Government but to implement the decision, and it can be implemented by options, including the legislation of the oil and gas law, or the development of paragraphs that include constitutional and legal deadlines in the budget law if it is legislated,".

"It is possible to reach a solution through the oil and gas law, whose legislation has become very necessary and urgent, and it is not possible to legislate the budget without applying the decision of the Federal Court," he noted.

On the budget file, al-Jubouri indicated that "the government is ready to deliver the 2022 draft budget in the event that the Parliament votes, authorizing it to send the law to the legislative authority, and the Ministry of Finance completed the initial draft after holding several meetings with the ministries."

On the price of a barrel of oil in the budget, he said, "The current selling price in global markets exceeds $100. It cannot be adopted because it was built under global crises such as the Russian-Ukrainian war and made it a price for a whole year in the budget. I believe that setting a price ranging between $60-70 is a safe price and realistic."

Regarding the closest option to verifying between budget legislation or voting on the emergency support law, al-Jubouri explained that “the government’s completion of the budget and sending it to the parliament for discussion requires a significant period between 3-4 months, and the best is to legislate the emergency support law to provide strategic food and pay some debts. Iraq must pay the gas dues to ensure the sustainability of the supply of electric power, and it can be approved in one parliamentary session.”