Iran will add to its oil stabilisation fund if crude prices remain over $65 in the next 12 months, the deputy central bank governor has said.
“As long as the price of petroleum is over $65 per barrel, Iran will gain extra petroleum revenue, which will find its way into the oil stabilisation fund,” Hossein Ghazavi told Bloomberg in a phone interview.
Oil accounts for more than 80% of the government’s revenue, making the oil fund essential to the country.
Iran currently subsidises gasoline sold at filling stations under a monthly quota system and also electricity, flour and other foods.
It is believed the country will have to eliminate these subsidies in order to make its economy more efficient.
An IMF report suggests Iran’s economy may grow 2.2% in 2010, up from 1.5% last year.
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