MercoPress. South Atlantic News Agency

OPEC asks “confused” PM Brown to also look at high oil taxes

Oil producers rounded on UK PM Gordon Brown on Friday for complaining about prices while raking in huge fuel taxes. A senior OPEC figure branded the Prime Minister “confused” for demanding the cartel maintained output levels to control prices rather than reducing domestic duty.

The spat threatened to overshadow the major oil summit organised by Mr Brown in London, where he urged closer co-operation between producers and consumers. Kicking off the event, Mr Brown warned that volatility in prices could cost the global economy trillions of dollars over the coming decades. Although a barrel of oil had now dropped below 40 USD, there was still a danger that the recent "spike" - where the price reached about 150 USD - would be repeated. Those levels hit the economies of consumers, and in turn sent demand for oil tumbling, meaning producers did not have stable revenues to invest in infrastructure, he said. "It is clear that our most pressing challenge is price volatility. Wild fluctuations in market prices harm nations all round the world. They damage consumers and producers alike," Mr Brown said. The "visionary internationalism" that had been displayed in connection with the global banking crisis must be applied to energy challenges, he added. However, within hours of Mr Brown's plea oil producers were criticising his approach. OPEC Secretary-general Abdullah al-Badri told BBC Radio 4's World at One: "I think Mr Brown is very confused, because if he is looking for the interests of his people he should look at the taxes". Ali Al-Naimi, oil minister of the country with the world's largest reserves, Saudi Arabia, also cautioned against excessive taxation. "The consumer's price is very high in many developed economies, where it is in excess of 80 dollars per barrel above market prices because of taxes," he told the representatives summit.