Nigeria’s recent fuel price hike has ignited widespread concern, with many attributing the surge to oil producers, particularly local entities such as Dangote Refinery.
However, the Organisation of Petroleum Exporting Countries (OPEC) has identified taxes imposed by major oil-consuming nations as the primary catalyst for the increased fuel costs.
OPEC’s Secretary-General, Al Ghais refuted the common belief among Nigerians that rising oil prices directly benefit oil producers at the expense of consumers, labelling this notion as a misconception.
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OPEC has further clarified that multiple layers of taxation, rather than crude oil prices, are the main drivers behind the escalating fuel costs.
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The high prices at the pump are not solely a reflection of crude oil prices or refinery margins. A substantial portion of what consumers pay was attributed to government taxes.
Al Ghais said:
“It is crucial to understand that the price paid by consumers at the pump is influenced by various factors, including crude oil prices, refining, transportation, and, notably, taxes.”
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