Europe Celebrates Its Latest Recession With Record High Gas Prices

Tyler Durden's picture

Just when you thought it was safe (well not really) to dip your toe back in the ocean of European equities on the back of the LTRO-enthused hope that credit contraction will cease and growth will return, we note another (perhaps more instantaneous) drag on the economic fortitude of the long-suffering people of the EU. Belgium's Beursduivel notes that the national average price for a liter of petrol (gas) has reached a Euro-zone record high of EUR1.76 which equates to a US (not imperial) gallon cost of (drum roll please) USD8.75 (given current EURUSD levels). As Greece, for example, basks in the hope of the failing Troika talks, they unfortunately will have to pay significantly more (double from 3 years ago) for their driving (or boat fuel) as despite the faltering economies across Europe, the price of petrol, diesel, and LPG are also near record highs - and all this without an actual Iran invasion.


Chart: Bloomberg

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lolmao500's picture

Hell in Quebec, right now, it's 5.26$/gallon or 1.39$/L.

Mr Lennon Hendrix's picture

Good thing we have the unicorn piss to mitigate peak oil production.

CrashisOptimistic's picture

Scope my comment below, LH, re the Brent Spread blowing out to $17 today.

And btw:

As Greece, for example, basks in the hope of the failing Troika talks, they unfortunately will have to pay significantly more (double from 3 years ago) for their driving (or boat fuel) as despite the faltering economies across Europe, the price of petrol, diesel, and LPG are also near record highs - and all this without an actual Iran invasion.

Greece imports 400,000 barrels/day.  Brent's price today is $114.50.  That's 16.7 billion dollars/year sent out of the country to pay for oil.  

Greek GDP = $312 billion

$16.7 billion is 5.4% of that number, drained out of the country yearly.  

It will now get worse.

falak pema's picture

nope, they'll replace it all with olive oil. and zeus gas. Greeks have divine powers. Zeus will dominate europa like a bull. You should live up to your avatar. 

Future Tense's picture

I'm pretty sure the record high gas prices might have something to do with the ECB's balance sheet. which looks almost the same as the Greek gas chart:

SheepDog-One's picture

lolmao, makes you wonder WHY it is they want gas low (or lower than the highest anyway) in the US, for the time being anyway? Placate the sheeple and hide the real truth and pain about how bad things actually are a bit longer?

lolmao500's picture

Ya... maybe that'll be their ``solution`` to the deficit...

What we should do in Canada is stop exporting oil. Supply the demand here, with lower prices, and build our reserves. Screw China.

Matt's picture

With neither of the new pipelines getting built, that is kind of what is happening.

What would make more sense is if there were higher royalties. That money could be used to subsidize domestic gasoline prices, or be used for other useful things such as:

1) balancing the budget

2) paying down the national debt

3) supplementing our USD reserves with some gold reserves

4) Really, almost anything is better than trying to go Venezuela style with $0.02 per litre gasoline.

gookempucky's picture

Matt, better watch the green folks as the xl was really about corporate dollars. Personally I am glad it did not go through--we can all breath better.


roadhazard's picture

Gas prices in Europe are high because of the taxes placed on it. Otherwise it would be about the same as North America. Peak oil has nothing to do with it, or Obama keeping the prices down for the sheep. The world oil price is set now in London (see London loophole) and is one of the reasons for high oil prices. The Enron loophole and the Goldman Sachs loophole are the other reasons. 

Five dollah a gal. gas was the financial straw that broke the back of the economy in 08'. America was built to run on cheap energy and Americans will not, can not afford to pay high fuel prices. This is another reason the economy is crawling now. The higher the price goes the more I cut back on my driving, and spending.

sun tzu's picture

Isn't obama paying your gas and mortgage?

roadhazard's picture

Everything is Way past Obama. Obama is like BushCo, just there to take the heat. Neither one of them was/is smart enough to keep this Can-O-Crap rolling until now. 

Debugas's picture

lol here in europe $1.8/L - $2/L

lolmao500's picture

Yeah but you use cars way less than us.

We have to drive 2-3 hours every day just to go to work.

Poetic injustice's picture

We have to drive 2-3 days just to get to work.

Fixed it for you.

NotApplicable's picture

We have to walk 2-3 days just to get to work.

Fixed it for you.

steve from virginia's picture

Nobody needs a car to go to work, only Americans believe they need a car for everything.

Taxi drivers use a car, it makes money, driving to work is a luxury. Take the bus.

In the Depression, people took the streetcar to work on Monday morning then slept in the store until Friday then they walked home. In NYC during the Depression a streetcar ride or subway was a nickel.

Americans need ... the idea of prosperity has been a bill of goods. Now the real bill is coming due: destroyed economies. Europe is in the process of becoming car-free, soon enough will follow the rest of the world. When car sales decline enough the factories must close.

War in the Middle East will accelerate the car-free process. Prices for fuel go up -- to a point. Then  purchasing power is drained away from fuel customers who lose their jobs and companies fail. No need to drive any more to the job that doesn't exist, robbed away by the car toy that has no use nor provides a return.

The economic problem is at the end of your driveway. It demands a choice: drive a car of have a job. Next comes drive a car or die in a war, drive a car or have something to eat.

This dynamic is never going to stop, the choices will become harsher. ... until the cars go.

Totentänzerlied's picture

Your argument implies, let me be perfectly clear and unequivocal, the complete and total undoing of everything that happened in community layout planning in the past century - the premise of which was CHEAP GASOLINE + UNIVERSAL CAR OWNERSHIP.

That has been the trend for a century. Changing it will either be done gradually or you'll be too busy tilling the fields and tending the livestock to worry about gas prices.

Flakmeister's picture

Yep... that's pretty much what he said...

AnAnonymous's picture


Maybe fewer and fewer drivers in a near future.

These fewer drivers will inherit large accomodating structures (like in 2008)

while the pedestrians are going to flock to less and less friendly structures or even dangerous structures.

sun tzu's picture

The inner cities have become warzones (Detroit, Newark) and the few livable areas are too expensive for the majority of people. They had no choice but to move to the surburbs and drive to work. Everyone I know who can take mass transit already does it. 

I always took mass transit when possible. Some jobs I had a choice to drive to work in 15 minutes or take the bus, which would take nearly two hours to get me to work, which was 10 miles away. There are no bike lanes, so I don't plan on becoming roadkill.

Nussi34's picture

Why would anyone take a car to work, if there are ailines and taxis????

LongSoupLine's picture



My car runs on bullshit and, since I live in the greater DC area, my tank runeth over...

Oliver Jones's picture

"Pigshit. Bartertown runs on pigshit."

ZeroPower's picture

I hear the referendum talk is slowly starting back up in Qc...

Fuck the only thing wrong with as awesome of a city as Montreal, is the complete hick's asshole province it's stuck in. 

Chuck Walla's picture

Bring on the war with Iran! Bullish!

littleguy's picture

It's close to USD $9 a gallon in the UK. 

arsenal009's picture

At least we got a half decent public transport system in Montreal  :p

brewing's picture

let's get that iranian embargo going and see if we can get it up to $10...

Azannoth's picture

yes and like 80% of this price is tax, Germany took in 41B euro in 2004 from Mineralölsteuer alone + VAT that's like 15%+ of the entire budget!

The only thing not taxed in Europe still is Air,  ..... no wait scratch that we have Co2 taxes galore!

JPM Hater001's picture

So, at what point do you think the Europeans realize it's our inflation causing this...

NotApplicable's picture

I'm not inflating! As for you, well... stop it!

ZippyBananaPants's picture

But FaceBook is going public???  Won't that fix all this stuff?  Who uses gas anyway?  (like)

Manthong's picture

Cheap gas in the US is the payoff we get for being the bag man in the Ponzi.

SheepDog-One's picture

'Cheap gas' at $3.40 here...not that cheap. Was near half that when Obama took office but anywho, being the bagman for the Ponzi is about to wear out as well.

Bam_Man's picture

Cheap gas in the US is the payoff we get for having the most powerful military the world has ever seen.

DaveyJones's picture

exactly..which makes it not cheap after all. See debt (and everyone hating us)

RubberMartyr's picture

One of the tylers has to be from Belgium. Ik heb dit al een tijdje geleden opgemerkt.

WmMcK's picture

Maar enkel slechts herinnerd?

fall's picture


This doesn't make sense. I assume you used Google Translate?

thales_miletus's picture

Amusing to "roundtrip" and go back to English...|en|Maar%20enkel%20slechts%20herinnerd%3F

Makes sense now...couldn't figure it out before!

mkhs's picture

Are carbon credits included?

Scisco's picture


Azannoth beat me to it.


Paying 1.25/L in Ontario right now. If I recall the Petro Canada sticker correctly, 45% of that tax. Wonder what the taxes are in Europe? Having problems googling that but don't really have time to look right now.

Silberadler's picture



South Germany:

current petrol/gasonline price at the pump: EUR 1.55 / diesel EUR 1.44

taxes: 60 - 70%


Go Canada , go !

We need to beat the Yanks, nicht wahr ? ;-)


css1971's picture

CNG, or LNG. I'm seeing increasing numbers of erdgas filling stations around.

The tax is lower, plus you can buy a device (basically just a compressor) which can be plumbed into the domestic gas supply which'll fill a CNG tank overnight from domestic gas. Strictly speaking I think it's illegal to run the vehicle on the roads with untaxed gas.


CrashisOptimistic's picture

In case anyone is watching . . .

The Brent Spread blew out to $17 today.  There is nothing new that I know of re obstructions moving WTI at Cushing to the Gulf Coast, as had been taking place.

This smells, rather, like a supply problem shipping to Europe and China from the North Sea (as in extraction rate from the North Sea is accelerating its decline).

Mr Lennon Hendrix's picture

But...But...the reserves!  There are reserves in the ground! 


machinegear's picture

What goes up, must come down once debtors are pulling me around in a rickshaw.

DaveyJones's picture

don't think anyone can or will pull you and six friends and their luggage 20 miles at 60 mph for four bucks.