European motorists bemoan soaring gas prices after Hurricane Katrina

STOCKHOLM, Sweden -- Grumbling European motorists watched gas-pump dials spin to extraordinary levels Friday as prices soared this week after Hurricane Katrina crippled fuel supplies in the United States.

The price of a liter of gas climbed above 1.40 euros ($1.73 per liter or $6.70 per gallon) in Germany and hit a record high in Switzerland. Spaniards were paying 1.07 euros per liter ($5.08 per gallon) on Friday, up nearly 7 percent since last week.

"Look at that! Eight liters -- 106 kronor ($14.20)," said freelance journalist Inger Ortenblad at a Stockholm gas station shaking her head in disbelief as the numbers swirled. "This is amazing."

Returning the nozzle, she affectionately patted the black sedan she had borrowed from a friend. "Good car," she said. "Fuel efficient."

The Geneva-based International Road Transport Union, which represents the industry, is pressing the EU to set limits on national fuel taxes, which it says exacerbate the price spikes.

In Sweden, where taxes account for 60 percent of the gas price, some motorists called for a price cap.

"This is a disaster," said Claes Brulenius as he filled up his black Volvo station wagon. "In this situation, you really have to introduce a maximum price for fuel."

He recalled driving through part of the United States -- including New Orleans -- earlier this year, and was surprised to hear Americans complain about having to pay more than $2 per gallon.

"People would say, 'I guess you Europeans aren't used to such high gas prices,'" he said. "I thought they were kidding."

Even before Hurricane Katrina plowed through the Gulf Coast, oil producers and refiners had been struggling to meet rising demand around the globe, particularly in the U.S. and China.

In the U.S., stations in some states ran out of gas Thursday as they were overrun by panicked motorists looking to top off their tanks as prices soared past $3 per gallon and reports of shortages spread.

In Germany, gas-station operators Total, Aral and Shell raised prices 12 euro cents (15 US cents) per liter in the span of 24 hours from Wednesday to Thursday.

"I don't remember it ever being so high," said Jan Meyer, a 33-year-old architect filling up his Volkswagen sedan in Berlin.

In Switzerland, the liter price rose 10 centimes (8 U.S. cents) Friday to a record 1.76 Swiss francs ($1.42). "The gasoline price is exploding," the Zurich-based tabloid Blick said.

Still, the Swiss pay considerably less for gas than their neighbors in France, said 24-year-old Keat Charles, a Frenchman who sells panini sandwiches in Geneva.

"In France, gasoline is becoming just too expensive and you also earn less, so I come here to Switzerland to buy cheaper gasoline and profit from the higher Swiss wages," he said.

Michael Brighten, of Dunmow, 40 miles northeast of London, said most people in Britain "now accept that petrol prices will rise above 1 pound ($1.83) per liter. But it's just something you have to live with. I'm not going to let it change my lifestyle in any way."

Previous surges in oil and fuel prices have led to widespread protests and blockades by truckers in countries, including Britain and France.

There was no panic in Europe, but plenty of moaning at the pumps, with some drivers considering alternative modes of transportation.

"With these prices I will start biking to work instead of driving," said Rikke Michelsen, 39, in Copenhagen, Denmark.

"It's really getting pricey, I may have to cut down on my driving," said 25-year-old Racheed Ali, reflecting on the price tag of 11.14 kroner ($1.85) per liter in Denmark.

Taxi drivers complained that soaring fuel prices threatened their business.

"We can't raise our prices because we would lose our customers," said Virgil Aldea, a 56-year-old taxi driver in the northwest Romanian city of Cluj. "Our prices have stayed the same, but the gas has doubled in price. If we starve to death, who will care?"

A liter of unleaded fuel costs about 1 euro ($1.20) in Romania -- significantly lower than in western Europe.

"We the taxi drivers are the ones who lose out," said 60-year-old Giuseppe Maiolo, outside St. Peter's Basilica in Rome. "Our prices have remained the same despite Katrina."

Italy's productivity minister, Claudio Scajola, said the government was looking into lowering taxes on gas so that consumers aren't hit so hard by rising prices, although he cautioned that the savings would be small and not felt immediately.

source