₦airaland Forum

Nigeria’s fuel price hike has sparked widespread concerns, with many pointing fingers at oil producers, particularly local operators like Dangote Refinery.

However, OPEC Secretary General, Haitham Al Ghais, has set the record straight, revealing that the real reasons behind high fuel prices lie elsewhere—primarily in taxes imposed by governments, including those of major oil-consuming nations.

In an article published on Tuesday, Al Ghais explained that crude oil and its derivatives form the backbone of global industries, powering everything from transportation to pharmaceuticals.

While many assume that rising oil prices directly benefit oil producers at the expense of consumers, the OPEC chief debunked this myth, noting that oil-producing nations are not the primary beneficiaries of retail fuel sales.

“Revenues are often generated, but they are predominantly earned by major oil-consuming countries through taxation,” Al Ghais highlighted. The Secretary General emphasized that countries within the OECD (Organisation for Economic Co-operation and Development) earn substantially more from the retail sale of petroleum products than OPEC member countries make from the sale of crude oil itself.

Between 2019 and 2023, OECD nations earned approximately $1.915 trillion more annually than OPEC nations from petroleum products. In 2023 alone, taxes accounted for around 44% of the final retail price of petroleum products in OECD countries, and in certain European countries, this figure exceeded 50%.

For Nigerian consumers, this highlights that the high cost of fuel at the pump is not merely a reflection of crude oil prices or refinery margins. Instead, a significant portion of what consumers pay is directed towards government taxes. “It is important to recognize that the price paid by consumers at the pump is determined by multiple factors, including crude oil prices, refining, transportation, and, notably, taxes,” Al Ghais pointed out.

Biodun556:
Tinubu should do something about this

budaatum:
Tinubu should remove subsidy and add tax?

Guess he has 2 more years to do just that. We are being prepared for it.

Biodun556:
Tinubu should do something about this

Biodun556:
You don't seem to understand the news

budaatum:
Tinubu should remove subsidy and add tax?

Guess he has 2 more years to do just that. We are being prepared for it.

budaatum:
Tinubu should remove subsidy and add tax?

Guess he has 2 more years to do just that. We are being prepared for it.

Biodun556:
Tinubu should do something about this

nairalanda1:
Okay, let him reduce fuel price to N65 and pay subsidy of 920 per liter....till all our budget goes on subsidy, and we are using loans for everything else...till IMF decides that they should stop pampering us, and removes the loan cover...

Then the real shege starts.

Brendaniel:
You guys are funny, so you guys really taught Tinubu was coming to work for you guys?

Person who said he supported Buhari for 8 years so that he can become president...

You people are funny, Tinubu is doing what he came to do, I'm surprised you people are surprised...

My question is what were you people thinking?

Biodun556:
He is doing well and he will perform

Brendaniel:
So what should Tinubu do like this?

nairalanda1:
Free market. Free market.

nairalanda1:
Free market. Free market.

Brendaniel:
Free market of what?

Biodun556:
The market is already free

nairalanda1:
It's quite simple. Government stops setting price through NNPC, and lets the marketers set the price instead.

Simple and short.

Fuel is not cheap. Even at N1000, it isn't.

Time to face realities, boys.

nairalanda1:
It's quite simple. Government stops setting price through NNPC, and lets the marketers set the price instead.

Simple and short.

Fuel is not cheap. Even at N1000, it isn't.

Time to face realities, boys.

Ojuntana:
Stop lying
Fuel is cheap

Biodun556:
Something that's been done already

Brendaniel:
After setting it free what happens next?

Biodun556:
Tinubu should do something about this

Biodun556:
Tinubu should do something about this