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 31, 2008




























