Iran's energy sector review

The Chairman of Tehran's Chamber of Commerce, Industries, Mines and Agriculture (TCCIMA) Yahya Al-e Eshagh announced on Tuesday that tax revenues will replace oil crude export incomes in next year's budget. Iran's solar year starts on 20 March. Before, Iran's Oil and Economy ministers talked about a similar plan, saying that for compensating the drop in oil export incomes because of sanctions, reforming the taxes laws and increasing taxes revenues are an option. According to current yearly budget, tax income shares seven percent of Iran's GDP, with $27.7 billion worth. The Iranian Parliament ratified the crude oil export volume at 2.740 mbpd (including 340,000 barrels of condensates) at $85 per each barrel of crude oil. In total according to budget, the oil export revenue for the current solar year is expected to be $72.598 billion. Iran's current yearly budget amounts at $462 billion based on the official USD rate in Iran. On the other hand, accor

Iranian government is planning to pre-sell crude oil to citizens, aimed to attract investment for oil industry sector, which long been suffering from lack of liquidity. Ahmad Ghalebani, head of National Iranian Oil Company told Shana on Sunday the government in planning to issue Oil Sukuk (an Islamic type of bond) in the form of "forward contract" to attract the assets of citizens for investing in the oil industry sector. Forward contract is a contract that specifies the price and quantity of an asset to be delivered in the future. "According to this plan, Iran wants to pre-sell crude oil to people in the form of bonds," he said. Just 12 month ago, Iranian government announced its plan to establish crude pre-selling to people, and Oil Minister Rostam Qasemi said that $15 billion worth Sukuks have been permitted to be issued by Iran Securities and Exchange Organization. However, this plan didn't work out. Qasemi had said that issuing oil Sukuks me

Iranian Parliament is preparing a bill aimed to decrease taxes and social welfare charges of the producers by 10 percent and 15 percent respectively. Currently, the share of taxes in Iran's GDP is about 7 percent. On August 10, the State Tax Affairs Organization's director Ali Askari said that the current year's budget law has envisaged earning some $27.7 billion as a tax income. Decreasing taxes may help industry sector to revive a little, but regarding western sanctions targeting Iran's oil revenues, Iran has no choice, but to increase tax incomes by 2.5 times. Last year, Iran's GDP was about $411.4 billion, while oil revenues from exporting crude oil and petroleum production were about $115 billion. However, Iran's oil export has fallen to 1.2 million barrels per day on average during current year. Even, according to the latest report of the International Energy Agency, which was published on October 12, Iran's crude oil exports and output s