The Secretary General of the Organisation of Petroleum Exporting Countries (OPEC), Haitham Al Ghais, has said that taxes imposed by major oil-consuming countries, not oil prices, are the primary driver of fuel costs.
Apparently reacting to the widespread cries of high petrol prices in some OPEC member countries like Nigeria, Al Ghais explained that the prices paid by consumers at the pump were determined by various factors, including the price of crude oil, refining, transportation, and marketing costs, oil company margins, and taxes.
According to Al Ghais, revenues generated from oil sales are often reinvested by oil-producing countries into the oil sector.
He stated that OPEC member countries reinvested a substantial portion of their revenues into exploration, production, and transportation projects.
That reinvestment, he said, ensured the continuous supply of oil to meet global demands.
On the other hand, the OPEC boss noted that consuming countries’ governments received significant revenue from taxes imposed on petroleum products.
In 2023, the Organisation of Economic Co-operation and Development’s average share of total tax on the final retail price increased year-on-year and amounted to approximately 44 per cent.
That reinvestment, he said, ensured the continuous supply of oil to meet global demands.
On the other hand, the OPEC boss noted that consuming countries’ governments received significant revenue from taxes imposed on petroleum products.
GIK/APA