$9 Gas in Europe

[RunInRed 16,438]

Think Gas is High? Try Europe

Wednesday, May. 28, 2008 By BRUCE CRUMLEY/PARIS

American motorists are understandably grumbling over skyrocketing gas prices as the summer travel season approaches. But their pain hardly registers against the rage afoot in Europe these days. Fishermen, truck drivers and farmers are threatening to bring entire economic sectors to a halt with protests against crippling fuel costs. The wave of angry action is expected to spread further across Europe in coming days, despite efforts by political leaders to feel the pain and figure out how to alleviate it.

Strikes and blockades staged over the past three weeks by French fishermen spread this week to Spanish ports; Italy, Portugal, and Greece expect more of the same on Friday as mariners seek to force national governments to offset marine diesel prices, which have shot up by 40% since January. Single boat owners and entire trawler fleets face a real threat of bankruptcy.

Matters are no better on land. On Tuesday, hundreds of British truck drivers in London and Cardiff brought traffic to a crawl in a campaign to get their government to lower taxes on diesel fuel, which now costs over $11 per U.S. gallon (3.8 liters). Other businesses owners who rely heavily on gas use — including farmers, ambulance and taxi drivers, and private bus companies — have joined the protest movement or are preparing to do so.

Those labor protests reflect the hit millions of Europeans are taking at the gas pump. As American drivers groan over prices nearing $4 a gallon, the French are paying $8.67 for a gallon of super, compared to $7.10 in January, 2007. A gallon of diesel in French gas stations averages $8.54, up from $5.35 just a year ago. And in the U.K. diesel costs $11.50 per gallon, compared to around $3.90 in the U.S. Across the European Union, the average cost of a gallon of gas runs to about $8.70 — more than twice what Americans are shelling out to fill up. And Europe's dizzying fuel costs would be even worse if it weren't for the considerable appreciation of the euro and the British pound against the dollar over the past year, which has partially offset the price escalation in dollar-traded oil.

One big reason for the difference is that European governments put a much higher tax burden on fuel than the U.S. does. State and federal taxes currently make up just 11% of the pump price in the U.S., according to the Energy Information Administration; in France and the U.K., taxes account for an average of around 70%.

Given the growing chorus of angry protests, it isn't surprising that leaders across Europe have begun scurrying for ways to provide some relief at the pump. But their margin for maneuver is limited. On Tuesday, for example, French President Nicolas Sarkozy proposed suspending most value-added tax (VAT) on gas, a measure he said would mean as much as $267 million in savings per quarter to those hit hardest by fuel price increases. VAT rates on gasoline across Europe range from 15% to over 20%, so it's little wonder that Sarkozy's proposal was backed by leaders in Italy and Spain as a painless way to lower prices.

But as Sarkozy himself acknowledged, no nation among the European Union's 27 member states can make such a move without the unanimous approval of the others. Meanwhile, some observers warn that suspending VAT, like the proposed "gas holiday" for U.S. drivers, would deprive governments of sorely needed tax revenues and encourage producers to soak up most of the temporary cost cut. "Changing taxation on fuels in order to combat increasing prices would send a wrong message to producing countries," said E.U. energy spokesman Ferran Terradellas. "This would show them they could increase prices and that the citizens would have to pay."

Others suggest that such short-term efforts to reduce fuel costs send the wrong message anyway to drivers who need to cut consumption. Polls show that 70% of gas-rattled British voters are now unwilling to pay higher taxes to combat climate change. That hasn't stopped some European leaders from taking the bitter pill approach, arguing that today's pain over surging gas prices should be used to encourage longer-term environmental gain. "We don't need one-shot measures," Nathalie Kosciusko-Morizet, the French secretary of state for the environment, told parliament following Sarkozy's proposal, "but rather to free ourselves from oil." True enough. But that's cold comfort for truck drivers, fishermen, and summer vacationers who can't afford to fill up in the meantime.

http://www.time.com/time/world/article/0,8...1809900,00.html

[otterinbham 0]

Yeah. But the difference is that Europe actually has good public transportation. If I could get my kids on a train for Atlanta to visit the grandparents this weekend, I'd do it.

[RunInRed 16,438]

70% tax on gas?! That is beyond ridiculous....but I guess they do have good public transportation

[AUTiger1 0]

70% tax on gas?! That is beyond ridiculous....but I guess they do have good public transportation

I was about to ask if I was reading that right or if was a typo in the article. Good Lord 70% is outrageous!

[RunInRed 16,438]

I've never really thought of gas as a "sin" tax before but I wonder if that is what is going on here. Similar to a cigarette/alcohol tax. Hmmm...if that is the intent, not sure if I disagree with the motive...now the means, is a different story.

[CCTAU 3,336]

Europe has always had high taxes. In the UK, they tax everything, gas, cigs, alcohol to the point that if folks quit drinking and smoking, the government would collapse. That's why fuel has always been so high in Europe.

And the public transportation is not all that great. It's just that most folks in Europe live in cities. They don't have much land there. So to compare the US to Europe is a fools comparison.

They always say in the UK that America thinks 100 years is a long time, and Brits think 100 miles is a long distance.

We have much more reliance on individual transportation than most any other nation.

And for all you greenies out there extolling the virtues of Brazil; don't. They have one of the worst tax systems in the world too, when it comes to fuel.

[Justin5 20]

AND, the entirety of Europe is smaller than the US. That is a big factor. We are a nation of people who live for space. Europeans are much more compacted.

[autigeremt 6,652]

70% tax is outrageous regardless of their situation. My gosh! That's what happens in a social democracy. More balance is needed if the tax is 70%. Unreal.

[otterinbham 0]

Then again, if Birmingham had a subway, I'd ride it every cotton-picking day. I love good public transportation, especially when you realize how much of your time and money you waste just finding a parking space.

[Justin5 20]

My Life =

[autigeremt 6,652]

Public Transportation is nice in Metro areas, but it's hard to justify the costs in suburbia or rural areas that are growing.

Tiger Transit is a nice way to go around here, as long as you live near a pickup point.

[AUTiger1 0]

My Life =

That's great, but unfortunately I live out in the country and the subway just doesn't run out here. Even if I were to move into Huntsville I still would have to drive to work and it would still take anywhere from 20 to 40 minutes, depending on traffic and what part of town you live in.

But seriously, it is good that you have that luxury. Any little bit helps.

[BamaGrad03 0]

I remember when they used to say: Man you think gas is bad here, its like $4 in Europe.

[AURaptor 1,125]

Screw Europe. They tax far too high for everything over there. It's stupid to compare us to them. We left them for that very reason, to avoid the extensive grip of the STATE.

[arnaldoabru 11]

Europe has always had high taxes. In the UK, they tax everything, gas, cigs, alcohol to the point that if folks quit drinking and smoking, the government would collapse. That's why fuel has always been so high in Europe.

And the public transportation is not all that great. It's just that most folks in Europe live in cities. They don't have much land there. So to compare the US to Europe is a fools comparison.

They always say in the UK that America thinks 100 years is a long time, and Brits think 100 miles is a long distance.

We have much more reliance on individual transportation than most any other nation.

And for all you greenies out there extolling the virtues of Brazil; don't. They have one of the worst tax systems in the world too, when it comes to fuel.

Lived in England 3 years, never owned a car.Got everywhere I needed to go on public transportation.

[BamaGrad03 0]

Feel free to return.

[autigeremt 6,652]

Right on BamaGrad..... The U.S. is nothing like Europe. What works for them may work in the cities of America (where public transit exists already), but not out in the rural areas. Don't tax me just because I choose to live in the country!

[CCTAU 3,336]

Europe has always had high taxes. In the UK, they tax everything, gas, cigs, alcohol to the point that if folks quit drinking and smoking, the government would collapse. That's why fuel has always been so high in Europe.

And the public transportation is not all that great. It's just that most folks in Europe live in cities. They don't have much land there. So to compare the US to Europe is a fools comparison.

They always say in the UK that America thinks 100 years is a long time, and Brits think 100 miles is a long distance.

We have much more reliance on individual transportation than most any other nation.

And for all you greenies out there extolling the virtues of Brazil; don't. They have one of the worst tax systems in the world too, when it comes to fuel.

Lived in England 3 years, never owned a car.Got everywhere I needed to go on public transportation.

Of course you did. England's the size of a pimple on large woman's butt. So their train system is feasible. It only take about a day to go from farthest south to farthest north. But there are many folks int he UK who DO have a car and drive. And the lorries are all over the roads.

If Birmingham had a subway, it would be broke right now. Look at MARTA, they can barely stay afloat. Folks in the south just don't stuff themselves into the city like that.

[arnaldoabru 11]

Feel free to return.

Beautiful country, great people, unlike West Vance

[BamaGrad03 0]

Feel free to return.

Beautiful country, great people, unlike West Vance

I don't live in Tuscaloosa. And I don't think anyone who isn't in college or associated with college should.

I live in Birmingham. And it kicks ass. $4.00 gas and all.

[Tiger Al 0]

Europe has always had high taxes. In the UK, they tax everything, gas, cigs, alcohol to the point that if folks quit drinking and smoking, the government would collapse. That's why fuel has always been so high in Europe.

And the public transportation is not all that great. It's just that most folks in Europe live in cities. They don't have much land there. So to compare the US to Europe is a fools comparison.

They always say in the UK that America thinks 100 years is a long time, and Brits think 100 miles is a long distance.

We have much more reliance on individual transportation than most any other nation.

And for all you greenies out there extolling the virtues of Brazil; don't. They have one of the worst tax systems in the world too, when it comes to fuel.

Lived in England 3 years, never owned a car.Got everywhere I needed to go on public transportation.

Of course you did. England's the size of a pimple on large woman's butt. So their train system is feasible. It only take about a day to go from farthest south to farthest north. But there are many folks int he UK who DO have a car and drive. And the lorries are all over the roads.

If Birmingham had a subway, it would be broke right now. Look at MARTA, they can barely stay afloat. Folks in the south just don't stuff themselves into the city like that.

I lived in Germany for three years. Never had a problem with public transportation, either traveling in the city I lived in, traveling in Germany or traveling in Europe as a whole. Buses, subways, trains-it was all good. It was cheap, highly efficient and didn't take that much longer than driving.

The reason public transportation isn't as common here isn't because of distance, it's because we're addicted to cars and their convenience.

[TexasTiger 12,965]

Europe has always had high taxes. In the UK, they tax everything, gas, cigs, alcohol to the point that if folks quit drinking and smoking, the government would collapse. That's why fuel has always been so high in Europe.

And the public transportation is not all that great. It's just that most folks in Europe live in cities. They don't have much land there. So to compare the US to Europe is a fools comparison.

They always say in the UK that America thinks 100 years is a long time, and Brits think 100 miles is a long distance.

We have much more reliance on individual transportation than most any other nation.

And for all you greenies out there extolling the virtues of Brazil; don't. They have one of the worst tax systems in the world too, when it comes to fuel.

Lived in England 3 years, never owned a car.Got everywhere I needed to go on public transportation.

Of course you did. England's the size of a pimple on large woman's butt.

Man, I don't want to meet the women you've known...

[CCTAU 3,336]

Europe has always had high taxes. In the UK, they tax everything, gas, cigs, alcohol to the point that if folks quit drinking and smoking, the government would collapse. That's why fuel has always been so high in Europe.

And the public transportation is not all that great. It's just that most folks in Europe live in cities. They don't have much land there. So to compare the US to Europe is a fools comparison.

They always say in the UK that America thinks 100 years is a long time, and Brits think 100 miles is a long distance.

We have much more reliance on individual transportation than most any other nation.

And for all you greenies out there extolling the virtues of Brazil; don't. They have one of the worst tax systems in the world too, when it comes to fuel.

Lived in England 3 years, never owned a car.Got everywhere I needed to go on public transportation.

Of course you did. England's the size of a pimple on large woman's butt. So their train system is feasible. It only take about a day to go from farthest south to farthest north. But there are many folks int he UK who DO have a car and drive. And the lorries are all over the roads.

If Birmingham had a subway, it would be broke right now. Look at MARTA, they can barely stay afloat. Folks in the south just don't stuff themselves into the city like that.

I lived in Germany for three years. Never had a problem with public transportation, either traveling in the city I lived in, traveling in Germany or traveling in Europe as a whole. Buses, subways, trains-it was all good. It was cheap, highly efficient and didn't take that much longer than driving.

The reason public transportation isn't as common here isn't because of distance, it's because we're addicted to cars and their convenience.

Perfect libbie response

Europe has always had high taxes. In the UK, they tax everything, gas, cigs, alcohol to the point that if folks quit drinking and smoking, the government would collapse. That's why fuel has always been so high in Europe.

And the public transportation is not all that great. It's just that most folks in Europe live in cities. They don't have much land there. So to compare the US to Europe is a fools comparison.

They always say in the UK that America thinks 100 years is a long time, and Brits think 100 miles is a long distance.

We have much more reliance on individual transportation than most any other nation.

And for all you greenies out there extolling the virtues of Brazil; don't. They have one of the worst tax systems in the world too, when it comes to fuel.

Lived in England 3 years, never owned a car.Got everywhere I needed to go on public transportation.

Of course you did. England's the size of a pimple on large woman's butt.

Man, I don't want to meet the women you've known...

Great response. I chuckle.