WHO GETS WHAT

FROM
IMPORTED OIL?

Tax

Industry margin

Crude price

It’s time to rethink

the price at the pump ...
July 2018
 HERE ARE THE FACTS
Oil is always big news. the final retail price amounted
Every increase in its price is to more than 50%. Therefore,
thought to raise fuel costs to the real burden on consumers
the detriment of consumers comes from taxes, not from
while generating huge in- the original price paid for
come for foreign oil produc- crude oil.
ers — such as OPEC Member
Countries (MCs). But this is a In a comparison of a com-
misconception. posite barrel of oil between
2013 and 2017 in percent-
While huge revenues are in- age terms in the OECD,
deed generated, they are crude oil prices plummet-
earned primarily by major oil ed by 33%, while taxes in-
consuming countries.* OECD creased by 14%. The
economies, for example, earn result is that producers
far more revenue from
the retail sale of pe-
troleum products Retail revenues
than OPEC coun-
tries make from VS
the original sale of export revenues
their oil.
$ billion 2013–17
From 2013 to 2,500
2017, OECD econ-
omies earned on
average about 2,000
$1,723 billion/ Difference:
year more from $1,723 billion
retail sales of 1,500
petroleum prod-
ucts than OPEC
2,445
Countries made
from oil revenues. 1,000
A significant
amount of the fi-
nal retail prices of 500 722
petroleum prod-
ucts is attributed
to high taxation 0
rates.
Estimated Estimated
annual annual
In fact, during average OECD average OPEC
2017, the share retail revenues oil revenues
of total tax of

* Presented figures are based on demand weighted average prices.

 TAXES ON OIL
lost revenue while indus- oil taxes are pure income
try saw increased profits for OECD MCs, oil export
and consumer governments revenues of OPEC Member
benefited from the oil taxes. Countries must also cover
the high costs of explora-
Moreover, while the bil- tion, production and trans-
lions of dollars earned from portation.

% change in a composite
barrel shares 2013 vs 2017

Tax
+14

Crude oil
–33

Who gets whatWho gets what

from a litre of oil in from
2015?
a litre of oil in 2015?
$/litre
1.8

1.6

1.4
Comparison of composite barrel
1.15 (67.2%)

1.2
0.90 (57.6%)
0.98 (62.3%)

0.91 (58.1%)

0.98 (62.3%)

% 2013 vs 2017 (in %)

0.82 (58.0%)

0.77 (55.4%)

0.82 (58.0%)

(55.4%)

60
(50.4%)

0.63 (50.4%)

1.0
0.76 (58.7%)

0.76 (58.7%)
0.64 (52.9%)

0.64 (52.9%)
0.630.77
0.40 (39.7%)

0.40 (39.7%)
0.14 (21.1%)

0.14 (21.1%)

50 0.8
0.29 (34.1%)

0.29 (34.1%)

40 0.6
51.3
0.4 45.0
30 39.9
(25.8%)

0.33 (25.8%)
0.33 (19.9%)
0.34 (23.8%)

0.33 (23.9%)

(39.6%)

(23.8%)

(23.9%)

0.34 (39.6%)
(34.1%)

0.34 (34.1%)
0.34 (27.1%)

0.33 (26.3%)

0.33 (27.1%)

0.33 (26.3%)
0.33 (20.8%)

0.34 (20.5%)

(20.8%)
0.34 (20.5%)

0.33(43.3%)

0.29 (43.3%)

0.2
20 26.9
0.37

0.33

0.33
0.32
0.32

0.29

0
ly 10d ny ceK nn aay Aly ged geny ce n a A ge ge
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Ir er F Sw CaN a vIr aver F Ca a v av
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OECD average 2013 OECD average 2017
ce Industry
Crude
margin
price Tax
Industry margin Tax
 Who got what
from a litre of oil in 2017?
$/litre

1.6

1.4

1.2
0.99 (62.8%)
0.97 (64.6%)

1.0
0.78 (57.6%)

0.84 (60.9%)

0.64 (51.3%)
0.64 (53.1%)
0.44 (41.5%)

0.15 (22.2%)

0.8
0.30 (34.0%)

0.6

0.4
0.34 (22.8%)

0.34 (39.1%)
0.34 (24.7%)

0.34 (27.9%)
0.34 (25.1%)
0.33 (21.2%)

0.34 (26.9%)
0.34 (32.5%)

0.2
0.30 (46.0%)

0
y e n a A e e
UK Italy an anc pa nad US erag erag
r m r J a
Ge
F Ca av av
G7 ECD
O

Crude price Industry margin Tax

Numbers are estimated in $/litre for the year 2017.

So the next time you hear that the price of a barrel

of oil is having an impact on the price you pay at the
pump, remember that oil-related taxes are imposed
by many governments who ultimately are often the
biggest beneficiaries.

More facts and figures available in the

online Annual Statistical Bulletin.
asb.opec.org