43% of Azerbaijan's State Budget to be allocated to oil & gas sector in 2026

12:46 - 10.03.2026

March 10, Fineko/abc.az. As you know, a barrel of Azerbaijani oil is offered at the world market for more than $100. And will the rise in oil prices allow allocation of more funds from the budget?

ABC.AZ informs that MP Vugar Bayramov commented on the occasion on his social network account.

The MP recalled that State Budget 2026 stipulates oil price of $65 per barrel.

"Naturally, it is impossible to compare the average annual price with prices for several days, weeks or even months. Speech is about the average value for the year. Nevertheless, according to statistical calculations, in January 2026 the average price of a barrel of crude oil Brent was $62.54 and in February it was $66.6. According to FRED, the average prices were $66.6 and $70.8. As you can see, in the first month of 2026, world prices hardly differed from those budgeted. In the first week of March, the oil price fluctuated in the range of $84-90," the expert noted.

Bayramov said that the price growth will increase the income of the State Oil Fund:

"In 2026, the oil & gas sector is expected to make up 43% of Azerbaijan's State Budget revenues, or 16.4 billion manats. Of them, 12.8 billion manats are transfers from the State Oil Fund. Thus, the increase in world oil prices will directly affect approx. 3.6 billion manats of budget revenues. Oil & gas revenues indirectly affect revenues from the non-oil sector. SOFAZ transfers are paid out of its own income, so their amount does not directly depend on the price of oil. However, high prices will lead to an increase in SOFAZ’s income and foreign exchange reserves. Consequently, with high monthly average price level, the budget will receive more funds from the oil & gas sector."

He stressed that growth in budget revenues will allow financing more funds to priority spheres: national security, restoration of liberated territories, strengthening social protection. More revenue means more fiscal spending, which also strengthens financial support for the development of the non-oil/gas sector.

Currently, crude oil Azeri Light (CIF) is offered at world markets at price of $103.03 per barrel. This is the first high since 2022 ($100.68). Before that, the price of Azerbaijani oil exceeded $100 per barrel only in 2014.

In general, the price of a barrel of Azeri Light reached a minimum of $15.81 on April 21, 2020 and a maximum of $149.66 in July 2008.