LOC12:10
09:10 GMT
KUWAIT, May 5 (KUNA) -- Net taxes on imported oil and derivatives levied by major industrial nations are higher than proceeds reaped by OAPEC's crude exporting countries, the Arab oil cartel said.
Total oil revenues of OAPEC member countries from 2009 to 2013 reached USD 2785,4 billion; an annual average of USD 557 billion, while revenues from taxes imposed on oil consumption in the G7 countries during the same period reached USD 6732 billion; an annual average of USD 1346.4 billion, according to an opening editorial, published in the organization's latest edition.
OAPEC member countries play a significant and active role in the global oil market. They secure flow of oil supplies to petroleum markets worldwide in line with their belief in their role to maintain the global petroleum market stability and sustainability. As a result, the oil industry has come on top of the "world energy mix."
It continued, saying financial revenues from the petroleum industry have been - and are still - the basic pillar for OAPEC member countriesآ’ national economies. For long decades, the revenues contributed to supporting economic development plans directly and indirectly whether in the OAPEC member countries or non-member countries. Member countries have invested their revenues in joint petroleum ventures worldwide. They have also played a significant role in providing financial assistance to various developing and less developed countries all over the world. This only stresses their position as a strategic and influential partner of choice that is reliable in the worldآ’s economic development.
At the same time, many major oil consuming G7 countries make significant profits out of petroleum imports via imposing taxes and customs on crude oil as well as petroleum products imports especially gasoline and diesel for the transportation sector. Tax in some European countries exceeds 55% of the total final consumer price. These revenues are major sources for funding G7 countries projected annual budgets.
What major oil consuming industrial countries gain from net taxes imposed on imported oil and its products exceeds the gains of the OAPEC member countries together from their total oil revenues. This refutes the claims of some international media outlets saying that the main reason for the continued slowdown of global economic growth rates is the high prices of imported oil; blaming petroleum exporting countries for that.
The reality is that the oil market is affected in general by the major G7 policies and legislations aiming at influencing the worldآ’s energy mix through imposing taxes and high fees on petroleum imports and oil products compared to other energy resources. The end consumer is the one to bear the expenses. Such policies could cause energy and economy imbalances including those of the developing countries, especially oil producing and exporting countries.
The continuation of imposing more tax on petroleum and its products by the oil consuming G7 might have negative implications on the oil industry in general in light of the current developments at the worldآ’s oil markets. This practice might cause the drop of the total financial revenues of the oil exporting countries, which would cause the cancellation or postponement of many petroleum projects, whose big part has been designed to improve the oil products specifications to conform to the international environment standards.
There is a dire need for more dialogue and transparency between oil and energy producing and consuming countries to assess current and future impacts resulting from plans to impose more taxes on oil consumption. OAPEC member countries hope for more efforts coordination to achieve more stability and progress in the worldآ’s oil industry. (end)
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