European consumer demand

WorldWatch chief analyst has confirmed the news today announced by the IEA that Portugal now has the most expensive petrol (gasoline) prices in Europe and one of the most expensive in the world.Consumers pay 1.729€ per litre for regular 95 Octane (crude price $113.25per barrel), US and European consumer demand has not increased and there is no sign of doing so in the near future. Portugal continues to face serious deficit problems , new economical measures were announced this year by the government, cuts in public spending, reduction by 5% in salary, reduction benefits in IRS, reduced and in most cases cancelled. What the Portuguese government forgot  to mention or announce any control over is the weekly increase in consumer petrol prices, this alone will affect the economy as petrol prices for the motorist keep going up,inflated by greedy companies such as Galp, BP, Repsol, Cepsa, they all practice the same final consumer price.

The involved petrol companies and government are pushing the public to a serious social unrest, last month was the beginning of such unrest as a number of protesters were arrested during a strike held across the nation.There is no reason for such inflated consumer petrol prices, this government seems to be unaware that due to high prices the revenue drops significantly as consumers travel much less. This month alone  the consumer price in all filling stations increased by 5 cents per litre !!!  

Trading analysts across Europe and the US see no particular reason for this latest increase. Back in 2008 when Brent crude reached a record $147 a barrel, consumer prices were much lower than now around Regular 95 Octane 1.249€ per litre.
As long as these prices continue inflated the tax revenue derived from petrol will continue to fall drastically forced by a severe drop in consumer demand, this year alone its expected to drop by 18%.