Crude Importers Gain More Profit Than Producers Through Heavy Taxes
September 9, 2000 - 0:0
TEHRAN The issue of crude oil is always presented in a distorted form before international public opinion particularly by the developed countries.
Efforts were always made to blame the oil producing countries for the high prices of the black gold. But the fact lies somewhere else.
Th developed countries put heavy taxes on the imported oil that reaches to consumer at an extra ordinary prices. For example, France imposed 80 percent taxes on the imported energy. As a result the consumers, the ordinary people protest against the higher prices of the energy.
Observers believe that, in most cases oil producers gain more profit than the oil producers through imposing heavy taxes.
Recently, France is facing unusual protest by those who are involved in public transport business.
According to a report of the AFP France's National Road Hauliers Federation (FNTR), the largest truck owners' group protesting against high fuel prices.
FNTR urged its members on Friday to lift the blockade strangling fuel supplies around the country. But UNOSTRA, the other group manning the barricades, said its members appeared to want to continue the five-day protest aimed at winning a 20-percent cut in diesel fuel taxes for large lorries.
FNTR represents the larger hauliers, while UNOSTRA is made up of small firms that say they are threatened with failure if they cannot get their fuel costs under control.
The government has said it would not go beyond the 15 percent tax cut if offered on Wednesday.
An opinion poll showed a surprisingly high 88 percent of the French were sympathetic to the protesters, who have choked off fuel supplies to four-fifths of all petrol stations in France and disrupted air traffic, school buses and garbage collection.
France, meanwhile, was under pressure from the European Union to respond on Friday to questions about whether it was violating EU law by not ensuring the free movement of goods.
FNTR President Rene Petit said after meeting Transport Minister Jean-Claude Gayssot: "We've made considerable progress toward meeting our demands." But the FNSEA Farmers' Union said they had made no progress in talks with Agriculture Minister Jean Glavany on their demands for a cut in fuel taxes for the farming sector.
FNSEA Head Luc Guyau has demanded direct negotiations with Socialist Prime Minister Lionel Jospin.
"We are totally determined to stay at the barricades," an FNSEA spokesman said.
The Paris region has been spared the worst and more than half its petrol stations operated normally. Commentators said the protesters apparently wanted to avoid a backlash in the capital which could turn public opinion against them.
The protest, which began on Monday after fishermen won tax concessions last week following a ports blockade, has been joined by private ambulance firms, driving school instructors, barge operators and other groups hit by soaring fuel prices.
Taxi drivers went back to work after winning the right to raise fares by 4.5 percent, thereby passing the burden of higher fuel prices on to their customers. Tour bus drivers also reached a deal with the government and ended their protest.
Fuel shortages reduced air traffic at Lyon, Nantes, Nice and Rennes airports to a minimum and airports were advising pilots to stop in neighboring Switzerland to fill up their tanks.
Diesel fuel in France costs 2.16 francs ($0.29) a liter before tax and 5.65 francs per liter including tax, a fraction below the EU average of 5.75 francs.
Meanwhile according a report ministers of the Organization of Petroleum Exporting Countries (OPEC) began gathering in Vienna on Friday for a weekend meeting which oil-consuming states hope can help cut high prices, but seem set to resist pressure while blaming governments.
Saudi Arabian Oil Minister Ali al-Naimi, the first to arrive before the Sunday meeting, called for Western countries to "do their part" to help bring down record oil prices, to complement OPEC efforts to cool markets, signalling a target of 22-28 dollars a barrel.
OPEC constantly berates governments for high taxes imposed on oil products levies which sometimes amount to nearly 80 percent of the price for the end-consumers, such as motorists.
OPEC ministers say governments have to do more to ease prices.
"Saudi Arabia is going to do its part to lower the crude price within the target band" of 22-28 dollars a barrel set by OPEC, he said arriving for a meeting Sunday of the OPEC.
But he added: "We hope that the consuming countries will do their part to lower the product price." Analysts have been predicting little more than 500,000 extra barrels.
Efforts were always made to blame the oil producing countries for the high prices of the black gold. But the fact lies somewhere else.
Th developed countries put heavy taxes on the imported oil that reaches to consumer at an extra ordinary prices. For example, France imposed 80 percent taxes on the imported energy. As a result the consumers, the ordinary people protest against the higher prices of the energy.
Observers believe that, in most cases oil producers gain more profit than the oil producers through imposing heavy taxes.
Recently, France is facing unusual protest by those who are involved in public transport business.
According to a report of the AFP France's National Road Hauliers Federation (FNTR), the largest truck owners' group protesting against high fuel prices.
FNTR urged its members on Friday to lift the blockade strangling fuel supplies around the country. But UNOSTRA, the other group manning the barricades, said its members appeared to want to continue the five-day protest aimed at winning a 20-percent cut in diesel fuel taxes for large lorries.
FNTR represents the larger hauliers, while UNOSTRA is made up of small firms that say they are threatened with failure if they cannot get their fuel costs under control.
The government has said it would not go beyond the 15 percent tax cut if offered on Wednesday.
An opinion poll showed a surprisingly high 88 percent of the French were sympathetic to the protesters, who have choked off fuel supplies to four-fifths of all petrol stations in France and disrupted air traffic, school buses and garbage collection.
France, meanwhile, was under pressure from the European Union to respond on Friday to questions about whether it was violating EU law by not ensuring the free movement of goods.
FNTR President Rene Petit said after meeting Transport Minister Jean-Claude Gayssot: "We've made considerable progress toward meeting our demands." But the FNSEA Farmers' Union said they had made no progress in talks with Agriculture Minister Jean Glavany on their demands for a cut in fuel taxes for the farming sector.
FNSEA Head Luc Guyau has demanded direct negotiations with Socialist Prime Minister Lionel Jospin.
"We are totally determined to stay at the barricades," an FNSEA spokesman said.
The Paris region has been spared the worst and more than half its petrol stations operated normally. Commentators said the protesters apparently wanted to avoid a backlash in the capital which could turn public opinion against them.
The protest, which began on Monday after fishermen won tax concessions last week following a ports blockade, has been joined by private ambulance firms, driving school instructors, barge operators and other groups hit by soaring fuel prices.
Taxi drivers went back to work after winning the right to raise fares by 4.5 percent, thereby passing the burden of higher fuel prices on to their customers. Tour bus drivers also reached a deal with the government and ended their protest.
Fuel shortages reduced air traffic at Lyon, Nantes, Nice and Rennes airports to a minimum and airports were advising pilots to stop in neighboring Switzerland to fill up their tanks.
Diesel fuel in France costs 2.16 francs ($0.29) a liter before tax and 5.65 francs per liter including tax, a fraction below the EU average of 5.75 francs.
Meanwhile according a report ministers of the Organization of Petroleum Exporting Countries (OPEC) began gathering in Vienna on Friday for a weekend meeting which oil-consuming states hope can help cut high prices, but seem set to resist pressure while blaming governments.
Saudi Arabian Oil Minister Ali al-Naimi, the first to arrive before the Sunday meeting, called for Western countries to "do their part" to help bring down record oil prices, to complement OPEC efforts to cool markets, signalling a target of 22-28 dollars a barrel.
OPEC constantly berates governments for high taxes imposed on oil products levies which sometimes amount to nearly 80 percent of the price for the end-consumers, such as motorists.
OPEC ministers say governments have to do more to ease prices.
"Saudi Arabia is going to do its part to lower the crude price within the target band" of 22-28 dollars a barrel set by OPEC, he said arriving for a meeting Sunday of the OPEC.
But he added: "We hope that the consuming countries will do their part to lower the product price." Analysts have been predicting little more than 500,000 extra barrels.