Oil subsidies at the International Transport Forum on Driving the Nation

Oil subsidies at the International Transport Forum on Driving the Nation

Leipzig, Germany – Lou Ann Hammond, CEO, www.drivingthenation.com is attending the 2012 International Transportation Forum.

At the 2012 International Transportation Forum (ITF) Renault’s Philippe Schulz, Expert Leader Environment, Energy & Strategic Raw Materials, said, “There are countries where gasoline is around $10.00 per gallon, but there are countries that subsidizes gasoline. These subsidies total about $200 Billion dollars a year.”

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Oil subsidies of $200 Billion? What is an oil subsidy?

Lew Fulton, Head of Division, International Energy Agency (IEA), defined an oil subsidy for me, “It’s not the money that comes from the government for research and development. A subsidy is any government action that lowers the cost of energy production, or lowers the price paid by energy consumers.”

According to the IEA, fossil-fuel consumption subsidies amounted to $409 billion in 2010, with subsidies to oil products making up almost 50 percent of the total.

Which countries have the highest subsidies on their gasoline and diesel?

How many light vehicles are on the road today? How many will be on the road by 2050?

How many gallons of gasoline are we using a day? How many will we need by 2050?

Listen to the video as Fulton explains all of this to Driving the Nation.

About the Author:

Lou Ann Hammond is the CEO of Carlist and Driving the Nation. She is the co-host of Real Wheels Washington Post carchat every Friday morning and is the Automotive, energy correspondent for The John Batchelor Show and a Contributor to Automotive Electronics magazine headquartered in Korea. Hammond is a member of the North American Car and Truck of the Year (NACTOY), Women's World Car of the Year (WWCOTY), and the Concept Car of the Year.