Chart of the Day: Euro at the pump

Today’s chart comes from Scott Barber from Reuters and puts the cost of fuel at the pump in Europe, and why a cheap Euro may not be wanted:

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Comments

  1. A good mate of mine has just moved from France to Oz, he tells me that the car market is dying in Europe and UK due to the high cost or fuel, a lot of people are walking or taking public transport because they cannot afford to put fuel in the car.

    • How is that a bad thing?

      Plus, it’s not just the price of fuel that’s forcing people out of their car. Traffic jams are a huge problem and lots of people are simply trying to avoid those.

      Investment in alternatives is increasing as well , as is innovation in engine technology.

    • This is exactly what it should happen here and in USA, but unfortunately our government hasn’t done anything to make public transport cheaper and more convenient. The future is anyway bleak regarding fuel and wasteful way of life of driving everywhere without even considering how much we spend for our laziness. That doesn’t mean the carbon tax is now the best solution for Australia.

      • You’ll get plenty of incentive in the US when the gas price goes above $5/gal like most of the rest of the developed world.

  2. There is a video on YouTube where someone filled up the tank on a BMW M5 as part of a review for a magazine (AutoExpress or CarBuyer)and he looks at the camera and says it cost 170 Euros to fill the tank.

  3. It’s all a rock and a hard place! The (easy) answers lie back in time.

    Have to agree with Anon though. We (including Aus) have to build Public transport infrastructure and service and stop building more and more bigger and bigger city freeways.

    The only trouble is in the meantime you have a massive auto industry everywhere we are trying to keep alive.
    (Meanwhile we’re even getting our damned railway carriages made in China!!!!!)

  4. So in Brisbane petrol is about $1.40 a litre most of the time, that’s about 1.12Euro at current exchange rates. They are around 1.5euro, so about 30$ more expensive. I’ll bet the average fuel efficiency of cars in Europe is about 20-30% better than the average in Australia.

    If our dollar was not so strong, we’d see much higher prices as well. The price pattern is much the same as Europe, but just not so high the last two years.

    Australian data in spreadsheet form here
    http://www.aip.com.au/pricing/retail.htm

    • The efficiency of cars in Europe is exemplary.
      When I did the numbers on a people mover I hired in England,the fuel consumed was 214 litres to travel 2205 miles. [Sorry for the mixed measurements.] The split between motorway, A roads and in town was 40/40/20.
      An example from 2001.
      They have improved again in the following decade.

    • So in Brisbane petrol is about $1.40 a litre most of the time, that’s about 1.12Euro at current exchange rates. They are around 1.5euro, so about 30$ more expensive. I’ll bet the average fuel efficiency of cars in Europe is about 20-30% better than the average in Australia.

      I expect those efficient european cars would be a lot more common here if a certain group of 3 manufacturers didn’t grossly overprice their vehicles in this country.

      It’s also worth noting the overall fuel efficiency of Europe is skewed by the much larger proportion of diesel vehicles (this is slowly changing in Australia though). I expect the far better lane discipline (and driving manners in general) makes a non-trivial contribution, as well. Australian drivers are pretty awful.

  5. Not to forget that the upside of the high AUD here acts as a lid on rising petrol prices. I’ve suggested numerous times that those calling for a lower AUD neglect this factor – if AUD was back at .70 and oil at USD100+ there would be a lot of unhappy voters out in electorate land.

    Whilst the strong currency bears the brunt of the blame for all manner of economic turmoil (particularly in manufacturing) I still reckon that if pressed a surprisingly high number of people would prefer the strong dollar and the immediate benefits it brings to the alleged longer term benefits of a lower currency. Many just don’t see it that way, having seen manufacturing and the automotive sector over the years in perpetual decline, always in need of government assistance.

  6. I thought the PM speech yesterday played to exactly that audience. Maybe I missed something subtle in it?

  7. Choice between two shit sandwichs as I see it, low dollar and marginally competitive manufacturers, happy tourist sector but lousy petrol and transport prices and unhappy electorate, or high dollar, broke manufacturers, tourist operators , but happy consumers and manageable transport costs,happy commodity exporters such as miners and grain farmers and an unhappy electorate either way.