Late News from The International Herald Tribune: Friday 9th November 2007

PARIS: With the price of oil hurtling toward $100 a barrel and prices at the pump rising sharply, politicians across Europe may soon be weighing how to deal with the onerous cost of filling the tank.

Since the start of the year, diesel prices in France, where protests have started, have risen by nearly 17% as fuel retailers like Total and Shell charge more, following the cost of crude oil upward. Consumers in Europe already face costs higher than in many parts of the world because of hefty taxes.

A big worry is that fuel price rises are contributing to an inflationary price spiral. Another is that past increases have triggered paralyzing national strikes. But European governments rely on fuel taxes to balance their budgets, drastically reducing the scope for cuts.

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