OECD boss hails high oil prices

The soaring cost of oil is welcome as it sends a clear signal to consumers and firms to curb their use of fuel, the head of the OECD has said.

Speaking at the annual meeting of the world’s richest nations, Angel Gurria said it would be “disastrous” if they cut fuel taxes or subsidised prices.

“The best solution to high oil prices is high prices” to cut demand, he said.

OECD members are trying to agree plans to tackle climate change and lessen the effects of the world financial crisis.

BBC