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However, much of the paid revenue does not benefit the oil producers rather it benefits the governments of the producing countries. There is a misconception on the major beneficiaries of oil revenues with majority of people…
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Download file to see previous pages Graph 2 compares the oil taxes and revenues gained from oil sale from the period of 2009 to 2013. In the period revenues gained from oil sale was an average of $966 billion yearly while average taxation was $1,082 billion every year. Moreover, the revenue received has to cater for oil transportation, exploration and transportation therefore; they can end up making losses under low oil prices.
Graph 3 compares the annual taxes earned from each barrel of oil and taxes earned per each barrel in the same period. It is clear that an average oil export revenues for each barrel is $95 while the average taxes per barrel is $116. Thus, taxes impose a great burden on the consumer oil products prices. The country graph illustrates each country breakdown of each barrel of oil in the oil producing countries relative to their taxes. From the results, it is very evident that the greatest beneficiaries are the governments through taxation and if oil products were not heavily taxed, they would cost the consumer just a fraction of their prices.
OPEC. (September, 2014). Who get what from imported oil? OPEC Annual Statistical Bulletin. Retrieved from ...Download file to see next pagesRead More
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