Good questions. Two possible reasons for the higher cost of subsidies in oil exporting countries are: the greater extent to which oil is being subsidized in these countries; and a subsidy on oil incentivizes people and producers to consume more of the product, and this higher consumption increases the cost of the subsidy. Governments are often reluctant to pass on the full cost of rising fuel prices to their citizenry, because higher fuel prices negatively impact people’s real income and consumption and a country's economic production. True, oil exporters have oil. But the issue is whether the money saved from removing subsidies could be spent better--for example,in improving health, education or infrastructure services.