American drivers, weighed-down by record-high gasoline prices, may have an unlikely ally as they seek policy responses to address the nation's current energy problems. The Associated Press reports that European drivers are joining them in fighting for lower energy costs
Drivers of private and commercial vehicles have staged protests and related demonstrations in France, Germany, Spain, and Portugal, among other European countries, as drivers deal with prices that have rocketed to the $8-10 per gallon range. In France, last week, more than 200 farmers and truck drivers blocked a fuel depot in Villette-de-Vienne, The New York Times reported.
The four-year rise in oil prices that has reduced U.S. disposable income has not exempted Europe. Given higher per gallon taxes across much of the continent, Europe may become the first major economic region in the world to see an average $10 per gallon gasoline price, if current trends continue. Taxes in Europe comprise 40-60% of the price of a gallon of gasoline, according to U.S. Energy Information Administration data; in the United States taxes account for about 12% of gasoline's retail price.
Current average prices for a gallon of gasoline in Europe, according to the International Energy Agency, are as follows: United Kingdom, $8.06; Germany, $8.37; France, $8.18; Italy, $8.33; Spain, $6.66.
Fuel Cost Analysis: Without question, the European fuel price increases represent pain at the pump. Still, although the average gasoline price in the United States is lower, the consequences of this energy crisis may be greater in the U.S. than in Europe, due to the car-dependent U.S. transportation system and more miles driven annually by Americans, on a per capita basis. But the trans-Atlantic discontent does seem to suggest that the time is right for the spheres to form an organization of oil importing nations to coordinate oil demand. After all, a well-known organization of oil exporting nations has coordinated oil supply for more than 40 years.
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