Question:

China has cut oil subsidies, but EU just adds one more oil subsidies. Why is this contrast ?

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China twice cut oil subsidies---- 10% last Nov. and 18% one month ago. But they are not hailed as a brave action on China’s part. Instead, China still remains as the focus of culprit in supply-and-demand theory responsible for oil price hike by US, UK media.

On contrast, 27-member-country European Union, especially France, have maintained a substantial amount of oil subsidies, and only one day ago, EU added one more oil subsidies for their fishermen.(see below)

Why is this contrast ? Why the US and UK media are not reporting it ?

China drops subsidies

http://biz.yahoo.com/rb/080619/china_oil_prices.html

http://benbittrolff.blogspot.com/2008/06/oil-drops-on-subsidy-cuts-in-china.html

EU enacts more oil subsidies:

http://www.fishupdate.com/news/fullstory.php/aid/11504/2_billion_euros_in_aid_to_cope_with_fuel_crisis.html

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2 ANSWERS


  1. China's subsideys are much greater than the EU's


  2. Please compare what is comparable.

    The EU has given "relief" on an oil which is already one of the most taxed worldwide.

    As our oil taxes are proportional to oil prices, our fuel prices have risen by more per liter.

    On the contrary, oil in China was largely under the market price and refineries for example were operating at losses.

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