The Secretary-General of the Organisation of Petroleum Exporting Countries (OPEC), Haitham Al Ghais, has attributed rising fuel costs primarily to the taxes imposed by major oil-consuming nations, rather than the price of oil itself.
In a recent statement, Al Ghais clarified that fuel prices at the pump are influenced by multiple factors, including crude oil prices, refining, transportation, marketing costs, oil company margins, and most notably, taxes.
His comments come at a time when Nigeria has witnessed several petrol price hikes over the past year.
The latest increase, announced by the Nigerian National Petroleum Company Limited (NNPC) on Monday, saw prices rise to between N950 and N1,019.22 per liter at its retail outlets.
Al Ghais emphasized that revenues generated by oil-producing countries are frequently reinvested into their domestic oil sectors, supporting activities such as exploration, production, and transportation.
However, he noted that governments in oil-consuming nations collect substantial revenue through taxes on petroleum products.
He pointed out that in 2023, taxes made up an average of 44 percent of the final retail fuel price in Organisation of Economic Co-operation and Development (OECD) countries, showing a year-on-year increase.
For many consumers, he explained, these taxes have a greater impact on their wallets than the crude oil price itself.
“It is the sovereign right of countries to set their own tax policies,” Al Ghais remarked.
“But when concerns arise about the impact of high fuel prices on people’s disposable income, it’s crucial to remember how much of the cost is due to taxes funneled to finance ministries globally.”
