May 26, 2008

Rising gasoline prices: the growing discontent in the World


The discontent is growing in the world facing higher gasoline prices in the wake of the oil prices that have exceeded $ 135 a barrel this week, demonstrations and strikes are multiplying.

The french fishermen who have obtained their government aid to cope with the rising price of diesel, have been emulated in Spain and Portugal.

Operation 'full free' by fishermen angry, May 23, 2008 in Morlaix
Enlarge photo
The Spanish fishermen have announced a demonstration in Madrid in late May and threaten to stop fishing in June if they receive no assistance. "We are calling for measures similar to those taken in France, with reductions in social charges or taxes," said Jose Antonio Suarez, head of an association of shipowners.

In Portugal, fishermen have announced a strike for May 30. "Our business is more profitable. In three years, we supported only increases in fuel prices without any government support," said the chairman of the owners of the port of Peniche (centre of coastline), Humberto Jorge.

Also in Europe, the Bulgarian bus drivers who demonstrated Friday and threatened to strike. The bus is very developed in Bulgaria (70% passengers) because of its competitive price, while the population is the poorest in the EU, with an average salary of 285 euros.

The price of diesel (1.30 euro), is currently higher than in nine other EU countries, according to a comparative table published in the Hungarian press.

It remains however below the Italy (1.53 euro), the Netherlands (1.44), Belgium (1.40), Germany (1.38), Finland (1.36) and France (1.35), according to figures for the week of May 18 to 24 collected by the International Road Transport Union (IRU).

In Moscow, hundreds of demonstrators gathered Saturday to denounce the rise in prices while Russia ranks second worldwide for the production and export of oil. Have Similar rallies were scheduled in at least 47 cities across the country.

A liter of gasoline cost an average of 21.25 roubles (0.57 euro) in Russia on May 12 and a litre of diesel 21.94 roubles (0.59 euros), according to figures from the federal statistics office Rosstat , Respectively, representing an increase of 9% and 12.2% since January.

In the USA, for the first time since the oil crisis of 70 years, data from the Ministry of Transport show that motorists have rolled 4.3% decline in miles (1 mile = 1.6 kilometers) that a year ago.

The average price for a gallons (3.8 liters) of gasoline in the USA reached $ 3.91 this week, up 21% over a year, according to figures from the American Automobile Club (AAA (Xetra : 722800 - news)).

In Asia, many governments are cutting back subsidies that allowed them to limit the rise in fuel.

The Indonesian authorities announced Wednesday that their prices would soon rise by 28.7%. "There is no guarantee that prices will not be further increased," said Vice President Jusuf Kalla. "But, again, it will not affect the poor," he continued.

Indonesia is the fourth most populous country on the planet and a producer of oil. To compensate for the increase, the government plans to distribute 1.5 billion dollars in grants to the poorest. But thousands of Indonesians are down this week in the streets to demand that the government waives the increase announced.

In India, a price increase is "inevitable" to help public companies that sell fuel at prices heavily subsidized, "said Minister of Petroleum MS Srinivasan Friday. According to the Indian press, the increase could exceed 20% for petrol and 16% for diesel.

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