Nigeria’s fuel price hike has sparked widespread concerns, with many pointing fingers at oil producers, particularly local operators like Dangote Refinery.
But according to the Organisation of Petroleum Exporting Countries (OPEC), taxes imposed by major oil-consuming countries are the primary driver of increased fuel costs.
OPEC chief, Al Ghais, debunked many Nigerians’ assumptions that the rising oil prices directly benefit oil producers at the expense of consumers, adding that the assumption seems to be a total misconception.
OPEC also declared that multiple taxation is the major driver of rising fuel costs — not crude oil prices.
“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 recognise 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.
Tribune Online has earlier reported the plea from stakeholders in the oil sector to the Federal Government to address the issue of multiple taxation in the country as it is causing more havoc in oil prices.
Recall that following the commencement of the sales of Premium Motor Spirit (PMS), also known as petrol from the 650,000 barrels per day Dangote Refinery, there was a price war between the refinery and its sole off-taker of the product, the Nigeria National Petroleum Company Limited (NNPCL).
The nation’s oil company, after lifting the first batch of petrol trucks from the refinery, claimed it bought at N898 per litre. However, the Dangote refinery in a swift reaction, said the disclosure of the price was an attempt to undermine the efforts of the refinery, describing the pricing as a ‘malicious statement’ from the NNPCL.
However, the nation’s oil company, while releasing the estimated price of petrol from Dangote Refinery for its retail outlets nationwide, said the refinery should provide a discount following its statement disputing its N898/litre pricing.
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