Iran's Labor News Agency has quoted an official in the Iranian presidency as saying that his government has established a base price of $37.50 a barrel as the basis for preparing the next Iranian annual budget, for March 2009-March 2010.
The Iranian budget is calculated on the basis of 50 percent revenues from oil exports.
The sharp drop in oil prices has placed Iran in a difficult economic situation.
According to a June 2008 report by the International Monetary Fund, if oil prices were to drop below $75 a barrel, Iran could face "unbearable" deficits in the medium term.
Source: Al-Sharq Al-Awsat, London, January 19, 2009
