Monday, May 01, 2006

Gas costs much more in Europe

As I thought, it's the price there is at least 2x more than it is here, because of taxes.

As Gas Nears $7 a Gallon, More Britons Take the Bus

Some snippets:
As Americans contemplate the misery of a summer of $3-per-gallon gas, drivers in Britain and much of continental Europe look on with resigned envy. High taxes long ago created some of the world's most expensive gasoline on this side of the Atlantic, where a family car is deemed more a luxury than a necessity and many people rely instead on extensive public transportation networks.

A snapshot of the future:

But even in Europe, where consumers are used to paying pump prices double, or more, what Americans pay, there is growing alarm over the effect of rising crude oil prices on fuel costs. Many motorists are driving less and altering the way they shop, take vacations and carry out other routines, according to interviews and opinion polls. Many airlines, delivery services and other fuel-dependent businesses are either passing increases on to consumers through higher prices or taking deep profit cuts.

Andris Piebalgs, the European Union's energy commissioner, warned last weekend that high oil prices were "destroying economic growth" in Europe.


Duties in Britain and the Netherlands

Williams said taxes account for about 66 percent of the pump price in Britain -- so of the current average price per gallon of $6.48, about $4.27 goes to the government. U.S. drivers pay an average of about 46 cents per gallon in combined state, federal and local taxes, according to the Tax Foundation, an independent organization in Washington.

Six years ago, when government taxes represented an even larger share of fuel costs, truckers, taxi drivers and other protesters blockaded Britain's oil refineries and storage depots to stop delivery to gas stations. The weeklong strike nearly paralyzed the country. British government officials said that in an effort to help consumers, they had frozen the primary tax on gasoline since 2003. It has remained at 47.1 pence per liter -- about $3.17 per gallon at today's exchange rates. On top of that duty, consumers also pay a 17.5 percent consumption tax.

In the Netherlands, gas is selling for about $6.16 per gallon, which includes $3.10 in duty and 19 percent sales tax, said Jelle Wils, spokesman for the Ministry of Economic Affairs. Wils said the government had held "heavy discussions" about tax cuts and other relief measures for consumers but decided not to interfere with market forces.

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