chapter  7
1 Pages

Opec’s Price Increases

WithRobin C. Landis

Between 1970 and 1973, the real price of crude oil increased substantially in percentage terms but modestly in absolute amounts. These increases largely resulted from increases in taxes and royalties levied by host country governments. Between September 1973 and May 1974, however, the Organization of Petroleum Exporting Countries (OPEC) discovered and exploited its ability to increase taxes and royalties to levels much higher than previously observed.