Saudi King: Oil Importers Should Cut Taxes

By ABDULLAH AL-SHIHRI

RIYADH, Saudi Arabia – Saudi Arabia’s King Abdullah said Saturday that oil-consuming nations should cut taxes on petroleum products when oil prices rise.

In a speech to a gathering of oil ministers, the world’s major oil companies and energy organizations, Abdullah restated his commitment to fair and reasonable oil prices and pledged to provide adequate oil supplies to the world market.

But the monarch, whose nation is the world’s largest oil exporter, issued strong advice for oil-consuming nations: reduce taxes on oil products and stop speculating.

"Reduce the burden on citizens by reducing taxes on oil products when prices rise," he told participants. "Limit the speculation, refute rumors and misleading information that could distort the realities of the market."

Oil prices fell 4 percent in the past week and settled Friday at a five-month low just above $56 a barrel.

In a separate speech, Saudi Oil Minister Ali Naimi blamed the instability of the oil market on excessive and inaccurate speculation.

"The absence of clear and accurate information is one of the biggest problems facing the market," he said.

Abdullah was attending the opening of the permanent headquarters for the International Energy Forum, an organization aimed at promoting dialogue between oil producers and oil importers. After his speech, participants held closed-door talks on oil pricing and other energy issues.

The king said his country’s oil policies and practices were characterized by "honesty and transparency" and that Saudi Arabia had adopted a relatively "moderate" position within the 11-member Organization of Petroleum Exporting Countries.

"Our oil policy is based on two principles: ensuring a reasonable and just price for oil and providing sufficient supplies for all consumers," Abdullah said.