2014 Budget: Reps recommend $79 per barrel as oil price benchmark

Members, House of Reps in session
Members, House of Reps in session

The House of Representatives on Tuesday resolved to retain $79 per barrel as the bench mark for the oil price for the 2014 budget.

The Deputy Chairman of the House Committee on Media and Public Affairs, Rep. Victor Ogene, who stated this at a news conference after a closed door meeting of the house that lasted for about two hours, said during the session, the house deliberated on several crucial issues, including security and the Medium Term Expenditure Framework (MTEF) on the benchmark.

On the MTEF, Ogene said that the position of the house was that the benchmark of the oil price should be left at $79 per barrel, stressing that while some members supported $79, others went for $76.5.

Ogene said that some members argued that the Conference Committee on MTEF should be allowed open hands to go and represent the house.

“The Conference Committee between the House and Senate began its work yesterday (Monday) and last week, as a house, we told you why we had to mandate almost the same set of members to represent us on that committee.

“As you know the position of the house as we speak is on $79 per barrel for crude as benchmark, so as we speak, 79 dollars is the position of the house.”

Ogene, however, said that “several members in their own wisdom also decided that we should give the Conference Committee on MTEF an open mind to go for that kind of negotiation because if you speak on one particular price, it is like foreclosing discussion.

“So if there are superior arguments or fresh facts that would be put before the committee regarding why there had to be a shift, I am sure the committee is better informed now and would be able to take a decision at the conference committee level.

“But of course,  what ever they (Conference Committee) come up with, they would have to report back to the house for ratification,” he said.


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