Financial Times FT.com

Rise in taxes on US petrol ‘not feasible’

By Carola Hoyos, Fiona Harvey and Clive Cookson in London

Published: May 27 2009 22:29 | Last updated: May 28 2009 00:44

Steven Chu, US secretary of energy, on Wednesday said that it would not be politically feasible for the country to lower its reliance on oil by raising petrol prices to Europe’s levels through higher taxes or regulation.

In the past Mr Chu, a Nobel laureate, has argued that if the US wanted to reduce its carbon emissions, policymakers would have to find a way to increase petrol prices to levels in Europe. But in an interview with the Financial Times, he said: “At this moment, let me be frank, it is not politically feasible.”

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this