Monday, October 03, 2005

Don't Forget About Poland

Much has been made lately about the rising price of gas here in this country. But let's not forget that oil prices are rising all around the globe, which is causing stress and anxiety amongst some populations that don't have much disposable income in the first place. The WaPo has a good, rangy article surveying this landscape (where gas prices vary wildly depending on whether the government subsidizes or taxes the gas). I recommend giving a full read, but here are a few tidbits (with an illuminating graphic):

 
Rising fuel prices are stoking popular anger around the world, throwing politicians on the defensive and forcing governments to resort to price freezes, tax cuts and other measures to soothe voter resentment.

The latest example came this weekend in Nigeria, where President Olusegun Obasanjo promised in a nationally televised Independence Day speech that the cost of gasoline would not increase further until the end of 2006, no matter what happened in global oil markets. He acted after furious demonstrations shut down whole sections of major cities around the country over the past several weeks.

Antagonism over the strains inflicted by escalating energy costs is a phenomenon that stretches from rich nations in Western Europe, where filling up a minivan costs upward of $100, to poor countries in Asia and Africa, where rising oil prices have driven up the cost of bus rides and kerosene used for cooking.

Although prices vary widely around the globe, with many governments keeping fuel costs below market levels and others maintaining stiff taxes on petroleum products, the mood in many parts of the world can be summed up in the lamentations of Julia Seitsang, a mother of 10 who lives in Windhoek, the capital of the southern African country of Namibia.
[...]
The impact is particularly hard on people in nations like Namibia, where the average annual income is $5,000 and gas costs about $5 a gallon. They have watched helplessly as the prices of crude oil and petroleum products, which are set in global markets, have soared over the past two years, first because of the powerful demand generated in large part by China's rapidly growing economy and more recently because of the gasoline shortages generated by Hurricane Katrina. But in many wealthy countries as well, discontent among ordinary citizens is compelling politicians to respond.

In the European Union, there was a brief attempt by the 25 member governments to maintain a united front against consumer demands for tax cuts, rebates and other subsidies to offset rising fuel prices. Many of those governments depend on taxes that add as much as $5 to a gallon of gas.

But the unity cracked last month as Poland and Hungary approved fuel tax cuts and Belgium promised a rebate on home heating fuel taxes. In France, where a gallon of regular unleaded gasoline fetches up to $6.81 in Paris, thousands of farmers and truck drivers staged brief street demonstrations two weeks ago, and the government offered them a $36 million package of gas tax breaks and rebates.
[...]
Nigeria, a major oil producer, offers perhaps the most disturbing illustration of the depth of antipathy that can arise when fuel costs increase. In Nigeria, rising petroleum prices have dramatically fattened the budgets of the government and the bottom lines of oil businesses but caused a powerful backlash against President Obasanjo and, say some motorists, against democracy itself.

Since Obasanjo's election in 1999 heralded the end of military rule, he has overseen years of steady decreases in government fuel subsidies at the urging of the World Bank. Prices have increased 44 percent, up to $1.74 per gallon, in just the past two months -- a bargain to Americans, perhaps, but not to impoverished Nigerians.

Many motorists have taken to filling up tanks only partway, a few dollars at a time, as money becomes available. Mohammed Ali, 26, a government contractor, said it costs $25 to fill the tank of his black Honda coupe. On this afternoon, he put about $3.50 worth in the tank.
 


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