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Dangote not reason behind high fuel prices in Nigeria-OPEC Scribe

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By Kayode Sanni-Arewa

The OPEC Secretary General called for a shift away from the narrative that pits consumers against producers, emphasizing that both groups are stakeholders in the energy ecosystem

Nigeria’s fuel price hike has sparked widespread concerns, with many pointing fingers at oil producers, particularly local operators like Dangote Refinery.

However, OPEC Secretary General, Haitham Al Ghais, has set the record straight, revealing that the real reasons behind high fuel prices lie elsewhere—primarily in taxes imposed by governments, including those of major oil-consuming nations.

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In an article published on Tuesday, Al Ghais explained that crude oil and its derivatives form the backbone of global industries, powering everything from transportation to pharmaceuticals.

While many assume that rising oil prices directly benefit oil producers at the expense of consumers, the OPEC chief debunked this myth, noting that oil-producing nations are not the primary beneficiaries of retail fuel sales.

“Revenues are often generated, but they are predominantly earned by major oil-consuming countries through taxation,” Al Ghais highlighted. The Secretary General emphasized that countries within the OECD (Organisation for Economic Co-operation and Development) earn substantially more from the retail sale of petroleum products than OPEC member countries make from the sale of crude oil itself.

Between 2019 and 2023, OECD nations earned approximately $1.915 trillion more annually than OPEC nations from petroleum products. In 2023 alone, taxes accounted for around 44% of the final retail price of petroleum products in OECD countries, and in certain European countries, this figure exceeded 50%.

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For Nigerian consumers, this highlights that the high cost of fuel at the pump is not merely a reflection of crude oil prices or refinery margins. Instead, a significant portion of what consumers pay is directed towards government taxes. “It is important to recognize that the price paid by consumers at the pump is determined by multiple factors, including crude oil prices, refining, transportation, and, notably, taxes,” Al Ghais pointed out.

In the UK, for instance, fuel duties are expected to generate £24.7 billion in revenue for the government in 2023-24, amounting to 2.2% of all receipts. Such figures indicate the global trend of governments, both in producing and consuming nations, leveraging petroleum products for revenue generation.

Al Ghais also underscored that while oil-producing nations do earn revenue from oil sales, a significant portion is reinvested into exploration, production, and infrastructure projects to ensure the continuous flow of supply to consumers worldwide. This reinvestment is critical for maintaining future oil supplies and stabilizing global energy markets.

In conclusion, while taxes play a crucial role in supporting government services and infrastructure, they also represent a considerable portion of the price consumers pay at the pump.

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The OPEC Secretary General called for a shift away from the narrative that pits consumers against producers, emphasizing that both groups are stakeholders in the energy ecosystem.

The current fuel price crisis in Nigeria is a stark reminder of the complexity behind fuel pricing, where taxes, rather than oil producers, bear much of the responsibility for what Nigerians pay at the pump.

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Trump, Biden Shake Hands In White House, Vow Smooth Transfer

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Donald Trump will make a triumphant return to the White House to meet President Joe Biden Wednesday, in the Republican’s first visit since departing under a torrent of scandal nearly four years ago.

Trump’s meeting with Biden comes as he moves swiftly to name his administration, including the world’s richest man Elon Musk as head of a new group aimed at slashing government spending.

Biden invited his sworn rival to meet in the Oval Office — despite the fact that 78-year-old Trump, who has consistently refused to admit his 2020 election loss, never afforded Biden the same courtesy.

Biden, 81, is expected to urge a smooth transition of power in the encounter at 11:00 am (1600 GMT) — and push for continued support for Ukraine.

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“He believes in the norms. He believes in our institutions,” White House Press Secretary Karine Jean-Pierre said Tuesday when asked why Biden was inviting Trump.

“The American people deserve this. They deserve a peaceful transfer of power.”

However, in a break with protocol, Trump’s wife Melania “will not be attending today’s meeting at the White House,” her office said on X.

National Security Advisor Jake Sullivan said Biden would go over top foreign policy issues when he meets Trump — including US support for Ukraine against Russia, which Trump has indicated he will end.

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The meeting may be a bitter pill to swallow for Biden, who branded Trump a threat to democracy.

The Republican leader of the House, Speaker Mike Johnson, said Trump may also visit the US Capitol, which a mob of his supporters stormed in 2021 to try to reverse his election loss.

Trump’s party looks set to take both chambers of Congress and consolidate his extraordinary comeback.

Tradition restored

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Biden’s Oval Office invitation restores a presidential transition tradition that Trump tore up when he lost the 2020 election, refusing to sit down with Biden or even attend the inauguration.

Then-president Barack Obama had welcomed Trump to the White House when the tycoon won the 2016 election.

But by the time Trump took his last Marine One flight from the White House lawn on January 20, 2021, he had also been repudiated by many in his own party for having stoked the assault on the Capitol.

That period of disgrace soon evaporated, however, as Republicans returned to Trump’s side, recognizing his unique electoral power at the head of his right-wing movement.

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Trump enters his second term with a near total grip on his party and the Democrats in disarray.

He has spent the week since the election at his Mar-a-Lago resort in Florida assembling his top team, as the world watches to see how closely he sticks to his pledges of isolationism, mass deportations and sweeping tariffs.

Trump named Space X, Tesla and X boss Musk, and another ally, businessman Vivek Ramaswamy, to lead a “Department of Government Efficiency (‘DOGE’)” — a tongue-in-cheek reference to an internet meme and cryptocurrency.

Musk’s out-sized influence within the Trump camp was underlined by multiple US media reports that the entrepreneur was accompanying the incoming president to his meetings with the Republican Party on Wednesday.

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Trump is moving quickly to fill out his administration, picking a host of ultra-loyalists.

Trump nominated Fox News host and army veteran Pete Hegseth as his incoming defense secretary. An outspoken opponent of so-called “woke” ideology in the armed forces, Hegseth has little experience similar to managing the mammoth US military budget and bureaucracy.

Trump named South Dakota Governor Kristi Noem — an ally who famously wrote about shooting her dog because it did not respond to training — as head of the Department of Homeland Security.

Florida Senator Marco Rubio is tipped for secretary of state, US media reported, while Trump has also confirmed Congressman Mike Waltz, a former special forces officer, as his national security advisor.

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John Ratcliffe, another figure who became prominent for defending Trump during his scandal-plagued first term, was named to head the CIA.

AFP

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Umahi Frowns At Slow Pace Of Suleja-Minna Road Construction

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The Minister of Works, David Umahi, has expressed sadness and disappointment over the slow pace and poor quality of the Suleja-Minna federal road construction, which has been ongoing for 14 years.

Despite reports of 84% completion, Umahi stated that the work executed does not match the reported progress.

Umahi’s comments came during a Town Hall Meeting and stakeholders’ engagement on the construction of the 1,068-kilometer Sokoto-Badagri superhighway in Minna, Niger State.

The minister emphasized the need for improved quality and speed in the project’s execution and added that all contractors handling federal government projects in Niger State will be invited for assessment.

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The Minister had passed through the Suleja-Minna Road to attend the meeting and express disappointment over the snail pace of work.

In addition to addressing the Suleja-Minna Road project, Umahi announced that the Federal Government is redesigning the Kano-Abuja Expressway. The new design will feature the use of concrete, which is expected to increase the road’s lifespan to between 50 to 100 years.

Governor Umaru Bago praised the value addition captured along the corridor of the road, particularly the irrigation potentials that the proposed 68 dams will avail farmers in the State. He also declared support for the choice of concrete in road construction.

Other stakeholders at the event raised concerns over funding and completion time of the projects.

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Bitcoin hits $90,000 for the first time as Trump backs crypto

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Bitcoin reached a record high above $90,000 on Wednesday, as the world’s largest cryptocurrency gained from President-elect Donald Trump’s pledge to ease regulation on digital assets.

Bitcoin surged to a peak of $91,000 before settling at $90,670.

The volatile asset has soared since Trump’s US presidential election victory last week, repeatedly setting new records.

Trump had pledged during his campaign to make the United States the “Bitcoin and cryptocurrency capital of the world.”

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His previous term included corporate tax cuts that boosted market liquidity, encouraging cryptocurrency investment.

In September, Trump announced he and his sons, along with entrepreneurs, would launch a digital currency platform called World Liberty Financial. However, its sales launch earlier this month was lacklustre, with only a fraction of tokens sold.

Cryptocurrencies have drawn global attention, marked by extreme volatility and the collapse of major industry players, including the FTX exchange.

In the lead-up to the election, Trump reportedly became the first former president to use Bitcoin in a transaction, buying burgers at a New York restaurant that hailed it as a “historic transaction.”

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