Spain brings in measures to reduce oil dependence

Posted by Big Gav

Reuters reports the Spanish government is reacting against rising oil prices - Spain brings in measures to lower oil costs.

Spain, aiming to reduce its dependence on oil as crude prices surge, will raise biofuel blending and lower both speed limits and rail fares, Deputy Prime Minister Alfredo Perez Rubalcaba said on Friday.

The minimum proportion of biofuels to be mixed with mineral fuels, known as minimum blend, is to be raised to 7.0 percent from 5.8 percent, he said.

The news sent shares in biofuel maker Abengoa up nearly 5 percent.

The fuel-saving measures, which include cutting the speed limit on motorways to 110 kilometres per hour from 120 Km/h and lowering short and medium distance rail fares by up to 5 percent, will come into effect on March 7.

"A 10 euros increase in oil prices as has been seen in recent days increases our country's energy costs by 6 billion euros per year, or 500 million per month," Rubalcaba said at a weekly news conference after a cabinet meeting.

Spain has little or no oil reserves, making it heavily dependent on imported oil.

2 comments

Greg says 2:53 PM

Have you seen Stuart Staniford's reaction to this, Gav?

http://earlywarn.blogspot.com/2011/02/no-no-no-no.html

I agree with Stuart. Food-based biofuels are not a feasible energy source.

Big Gav says 9:11 AM

I hadn't seen it but I agree completely - switching to biofuels is completely counterproductive.

I've been saying this for years so I tend to assume readers are tired of hearing it...