BAKU, Azerbaijan, November 19. A theoretical drop of $10 in the average annual oil price would have a minimal impact on Azerbaijan’s budget, affecting only 0.6-0.7 percent of total expenditures, said Heydar Asadov, a member of the parliamentary committee on Economic Policy, Industry, and Entrepreneurship, Trend reports.
Speaking during the plenary session on the draft 2026 state budget, Asadov highlighted that revenues from the oil and gas sector are projected to total $16.4 billion, with $12.8 billion of this amount being directly transferred from the State Oil Fund of Azerbaijan (SOFAZ) to the national budget.
He pointed out that these transfers are compulsory, irrespective of fluctuations in oil prices, meaning that only the remaining $3.6 billion, derived from SOCAR and taxes on profits from existing oil fields, is subject to potential changes based on market prices.
The MP further stressed that oil price variations should be primarily viewed in terms of their impact on the assets and financial sustainability of SOFAZ, rather than their direct effect on the income and expenditure of the state budget.
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