Brown "confused" about oil prices

22/12/2008

Gordon Brown's denunciation of the high oil prices witnessed in the summer demonstrate a "confused" understanding of the issue, the Organisation of the Petroleum Exporting Countries' secretary general has claimed.

Speaking to the BBC's World at One, Abdalla Salem El-Badri said that the British government had benefited more than most countries from the spiralling prices seen earlier this year because it levies high taxes on oil and gas imports.

The spike in crude costs also resulted in a substantial increase in heating oil prices, with wholesale heating oil prices on the New York Mercantile Exchange peaking above $4 a barrel in July.

"Instead of looking at Opec he should look at his policies and try to reduce taxes. Then he can talk to us," accused Mr EL-Badri.

His comments followed a statement by the prime minister in which he called on producers and consumers to work together to ensure that prices remain stable once the world economy begins to recover.