British fuel demand down 20% due to high prices
If you think we've got it bad here when it comes to fuel prices, our friends in Europe have it far worse. Gasoline is now $8.75/gallon in the UK and it is having a real impact on people's behavior. In a report from the International Energy Agency, it appears that British drivers are taking the high prices to heart and seeking alternatives. Gas station operators in the UK have reported a 20 percent drop in sales over the past year. With fuel costs making it impractical to run their vehicles, more commuters are hitting the buses and trains than ever before. Fortunately, people in the UK and the rest of Europe generally have public transportation as a viable option. Here in the U.Sdf. unless you live in a major city like New York or Chicago, mass transit is of limited use. For all of the millions of Americans who live in the 'burbs, there often is no option but to drive. And while recommending that people move closer to where they work might have been an option a year ago, the collapse of the real estate bubble in most of the country means that moving is usually out the question too.
[Source: Daily Telegraph]
Reader Comments (Page 1 of 1)
Cervus 9:27PM (6/12/2008)
According to Mastercard we're down about 5% or so. Overall by 1.3% over last year, the EIA says. With the lifting of a lot of the fuel subsidies in Asia, demand will get hit there, too. If China would do the same we might finally get a break on these oil prices.
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terrence_bethea 12:55PM (6/13/2008)
It is a fascinating folly that China, India, Indonesia, Malaysia, Russia, Venezuela and essentially all of the Middle East don't have any political leaders competent enough to realize that subsidizing 'discretionary' energy consumption is just plain stupid.
Granted, it's not like we don't have that affliction. Our country mandates 10% EtOH content, then subsidizes domestic production while placing tariffs on imports . . . and that happened under Republicans!
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TheRookie 3:30AM (6/13/2008)
The public transport in the UK is not as well developed as you think. To reiterate your statement, "Here in the UK unless you live in a major city like London or Manchester, mass transit is of limited use". I live in mid-size city (still called "a town" despite having 250K+ population) and bus isn't quite an option for me.
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solicitor in bulgaria 11:35AM (6/13/2008)
All this week in Japan it has been a delight driving to work. Even at what is usually the peak of rush hour, there were no lines at the tool booths and the highways were not crowded at all. When there is a good public transportation system to use when gas prices are too high, the oil companies will suffer instead of raking it in.
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Mike 1:55PM (6/13/2008)
Until we can find additional or alternative energy sources the best thing we can do right now is reduce consumption. Could you use 10-15% less fuel?
We might be surprised what effect that may have on fuel prices.
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Mehul Kamdar 1:56AM (6/15/2008)
Any reduction in the consumption of oil is a good thing. People will continue to drive when they need to get something important done, but the reduction in consumption in both the UK and the USA suggests that people in both countries are planning their trips better. A little discipline cannot hurt anyone - these habits will stay even if oil prices go back to where they were a year ago. And that means savings for both countries and less pollutants emitted into the environment. The car is a neccessary evil. No one is going to suffer from its responsible use.
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G Shaw 10:10AM (7/25/2008)
Sorry to join so late, but I just spotted this blog. As an update, a gallon of diesel in the UK costs at least $11.80. Petrol (regular gas) is a little cheaper, say $9.50/gallon. I'm quite impressed at the rate of reduction in UK oil consumption, and think that the taxation system should be shifted to reduce consumption and incentivise the purchase of more fuel efficient autos. If fuel duty were increased by 25/50p/litre, and basic rate income tax reduced by a corresponding amount, I don't think there would be too many folk upset.
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