Europe Oil Prices
Most of us are aware that Europeans pay a lot more than Americans do, when it comes to domestic fuel prices. Oil prices in Europe have been high since ages, when fuel in the USA was sold at $2/gallon; it was roughly priced at $5/gallon in many parts of Europe. The reason for such a marked difference is that there are mammoth oil taxes levied on oil by the governments in Europe. According to a study, the rate at which Europe gets its crude oil supplies is actually lower than the prices at which the USA gets it. So then, why is there such a telling gap in the final cost of fuel in America and the cost of fuel in Europe? The answer lies in the fact that in the US, only 10% of what the end-user pays goes to the white house, while in Europe, this percentage is roughly 70%.
People have adapted rather well to the spiraling costs of fuel in Europe by choosing some of the most innovative methods. People have started looking out for residences that are at a walking distance from the place they work, they have started using scooters that are far more fuel efficient than cars and they have also started opting for smaller fuel efficient cars than the gas-guzzling ones. SUVs are almost out of the market in European nations, with the cost of gas touching $9/gallon in some areas.
There is another peculiar, rather interesting feature of the taxes imposed and the cost of oil in European nations. Because the Europeans pay a lot more taxes on fuel, the present rise in the cost of crude oil, that has taken the world by a shock hasn’t affected much of Europe. The reason is that America has seen its oil prices double in the last few months, but in Europe, there has been a rise of just 40%-50% on their fuel costs, as the governments, particularly that of Nicholas sarkozy, have reduced the taxes levied. This step has acted as a buffer to the general public against the global surge in fuel prices.
Most affected though, are the people living in the isle regions of the Netherlands and Greece, because most of their commodities and supplies come via boats, and boats run on oil. Oil therefore, is pretty cheap in the Greek Isles as compared to the rest of the continent, and is priced at around $7/gallon.
Posted under Europe
This post was written by admin on October 2008
The difference in the oil prices in Europe and USA comes from a simple fact that oil is seen as a luxury in Europe and as a necessity in the USA. Many known and unknown reasons support this and the main reason is the tax difference.
I think the highest oil prices are in Norway because of the huge tax there. That wouldn’t be so strange if they weren’t the 5th largest oil exporter in the world.
That is because they are investing that money (from the extra tax on the oil) so in the future when the oil runs out and they can’t produce it anymore, they will have a significant income from the investments to support their social help. That’s why they have high oil prices.
Well that sounds a lot like socialism. Not that it’s a bad idea but it’s quite strange. I haven’t heard of anything similar done before. I guess that is a very smart way to use the high oil prices.
Socialism or not I like it. It’s something similar to Dubai’s way of taking the best from the high oil prices. Invest it and in the future don’t worry that your oil supplies deteriorate.
Something worth mentioning is that Europe depends on 50% import for its oil needs. I don’t know the numbers about USA but i guess it’s smaller and that is why the tax is different.
Or maybe they are trying to boost their economy with cheap resources like cheap oil and electricity. That is why they were hit so hard when the oil prices went sky high.
I agree with you. As I have seen so far, the Europe oil prices are higher than American ones. For instance, in my country, since last weeks, we had been having to pay around $1.7/litre. This is way too high.
Oh well, a good part does exist. Because of the high Europe oil prices, as you said, Europeans are trying to be ecological. And this is an advantage.
The high Europe gas prices may not be a problem if the other products’ prices were not related to them. But unfortunately, if the gas price gets high, the other products’ price will also get high.
Maybe we should do like Ducth people.
Oil is such an essential thing, yet the government all over the world put heavy taxes and surcharges over it. What is happening ? why the government hast to make money by selling fuel, make money by selling alcohol- that’s OK. Oil prices are high only because of these greedy governments over the years. Thank GOD now the crude prices are coming down like anything!!!.
Renting a car to go somewhere is an Impossible idea. The prices are too high. This is no way to be ecological.
I wholeheartedly support you, Oil is such an essential commodity, I can’t imagine life without because I use my car very much. The government should not treat people like this.