The General Secretary of OPEC, the group with de-facto control of the world’s oil supply, has said that No Mandate Brown is “confused” about oil prices.
Abdalla Salem El-Badri wasn’t best pleased with El Gordo’s pronouncement that volatile oil prices were to blame for global economic problems and that OPEC should do more to stabilise prices. El-Badri said that El Gordo should look at cutting taxes on fuel if he wanted to help and pointed out that the UK has done well out of high oil prices because of the high taxes.
But El Gordo isn’t confused about oil prices – he understands exactly what is happening to oil prices and more importantly, what low oil prices will do to tax revenues. When El Gordo talks about stabilising prices, what he means is that the oil price should be kept artificially high and that OPEC nations should take the rough with the smooth, losing money when the oil gets expensive and raking it in when it’s cheap. He didn’t care about people and businesses being unable to afford fuel when the price shot through the £1 barrier and kept on rising, all he’s interested in is keeping the price of oil high so the Treasury can carry on fleecing motorists to pay for their scorched earth budgets without having to increase fuel duty which isn’t a very popular tax.