Iraq is proposing to hike the oil price it uses for its 2013 budget, and it is likely that other MENA OPEC members will follow suit. It is using a price of $90/B in its preliminary 2013 budget, which has yet to be approved by the cabinet. This is up from 2012’s $85/B. The raise comes as the country looks to increase spending on projects and government salaries, taking total outlay to $118bn. This is up considerably from 2012’s record budget, which put total expenditure at ID117,123bn ($100bn).
Ratified by parliament in March (MEES, 12 March) the 2012 budget was based on exports of 2.6mn b/d, while the 2013 budget proposes them at 2.9mn b/d, including 175,000 b/d from the Kurds, although this could be more (See p17). This has been a source of tension with Baghdad threatening the Kurds with a $3bn budget bill if they do not provide their 2012 budget contribution of 175,000 b/d (MEES, 7 September). (CONTINUED - 482 WORDS)