Financial Times FT.com

Chu rules out higher petrol tax

By Carola Hoyos, Fiona Harvey and Clive Cookson in London

Published: May 27 2009 22:28 | Last updated: May 27 2009 22:28

Reducing America’s reliance on oil by raising petrol prices to European levels through increased taxes or regulation is not politically feasible, says Steven Chu, US secretary of energy.

The admission comes as Congress considers a cap- and-trade system that opponents say will substantially increase petrol prices just as oil prices soar to their highest level in six months.

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