30-04-08

OPEC says the governments of the UK, France and Italy pocket more than 50 % from a litre of gasoline, confirming the oil-exporting group’s opinion that rising crude oil prices contribute little to motorists’ pain at the petrol pumps in Europe and excessive taxes are the main culprit.
The UK’s tax on a litre of oil was 55 % in 2007, while France and Italy ate up 53 % each, ahead of Germany (49 %), Japan (38 %), Canada (30 %) and the US (26 %), OPEC said in its 2007 report: "Who gets what from a litre of oil in the G7".

It said the British Government received around 1.7 times more from taxation than OPEC received from the sale of its oil and the country also had the highest industry margins among the G7. Finding that the estimated average annual G7 oil taxes were $ 460 bn in 2002-06 against estimated average annual OPEC revenue of $ 410 bn, it said: “Thus, it is clear that the real burden on the consumer is taxation in the consuming countries.”
“If gasoline were not so heavily taxed in countries such as France, Germany, Italy, Japan and the UK, it would cost only a fraction of the current price,” said OPEC.

OPEC, which in March left its output steady despite calls from consuming countries for more oil to halt the record rally, endorsed the view that the market was well-supplied, with current commercial oil stocks standing above their five-year average. It said the current price environment did not reflect market fundamentals, as crude oil prices were being strongly influenced by the weakness in dollar, rising inflation and significant flow of funds into the commodities market.
Commenting on the European taxation regime on petroleum products, Qatar Deputy Premier and Energy Minister HE Abdullah bin Hamad al-Attiyah recently said: “It is easy money and they (Europe) are making more money than oil producers without putting in a single dollar.”

Source: www.futurefuelsme.com