Higher Oil Prices Met With Anger Worldwide

Rising fuel prices are stoking popular anger around the world, throwing politicians on the defensive and forcing governments to resort to price freezes, tax cuts and other measures to soothe voter resentment.

The latest example came this weekend in Nigeria, a major oil producer, where President Olusegun Obasanjo promised that the cost of gasoline would not increase further until the end of 2006, no matter what happened in global oil markets. He acted after furious demonstrations shut down whole sections of major cities around the country. Prices have increased 44 percent, up to $1.74 per gallon, in just the past two months - a bargain to Americans perhaps, but not to impoverished Nigerians. Many motorists have taken to filling up tanks only partway, a few dollars at a time, as money becomes available.

The impact is particularly hard on people in nations like Namibia, where the average annual income is $5,000 and gas costs about $5 a gallon. They have watched helplessly as the prices of crude oil and petroleum products soared over the past two years, first because of the powerful demand generated in large part by China's rapidly growing economy and more recently because of the gasoline shortages generated by Hurricane Katrina.

Indonesians have been paying about 90 cents a gallon for gasoline - until this weekend, that is, when the government of President Susilo Bambang Yudhoyono announced that gasoline prices would nearly double and kerosene prices would triple. Officials said they had no choice, since fuel subsidies have swelled to about one-third of government spending. Word of the impending price hike sparked protests in many cities; on Friday, police were using tear gas to disperse thousands of demonstrators.

China : continuous struggle with energy shortage

peakoil.com -> xinhuanet.com :

The Yangtze River Delta is one of the richest areas in China. But the region is poor in energy resources and in the last couple of years this economic engine house of the country was strangled by repeated power cuts. Supply is most stressed in summer in the peak period. It is not unusual for a manufacturing facility to operate only four days a week. Escalators in commercial centers were stopped. Half the streetlights were off. And in some areas, even traffic lights were turned off on a temporary basis.

The power shortage is not restricted to the Yangtze Delta, though. Started in 2001, it is a nationwide phenomenon with varied degrees of impact on different regions. Statistics show 24 provincial regions in China were forced to rationed power supply in 2004. The major factor behind the energy shortage was the overheated and improperly structured economy, accompanied by wasteful energy utilization. The issue is urgent and with far-reaching significance.

Statistics show by the end of 2004 China's total power capacity reached 440,000 MW. Experts say that should be raised to approximately one million MW by 2020, which means an annual addition of 33,000 MW. The prospects cause concerns over diminishing energy reserves and the environmental impact. To ensure healthy and sustainable development, the structure of industries as a whole and the mix of energy sources should be optimized. And frugal use of energy should become compulsory.

Hybrids in Singapore

motoring.asiaone.com.sg :

With petrol prices poised to cross the $2-mark into what many motorists will agree is the definitive 'ouch' zone, the time is truly ripe for alternatives that are less painful. On the menu then are cars that run on hydrogen, biodiesel, electricity and hybrid power. Among them, hybrids are currently the best bet because they have had a decent track record. And they are not dependent on third-party infrastructure, like specialised refuelling stations.

A hybrid, therefore, is like the proverbial cake that you can have and eat. But Singaporeans have not been biting. Since hybrids were introduced here in 2001, fewer than a dozen have been registered. Why? Because they are up to 30 per cent costlier than conventional cars. In fact, Toyota and Honda have since stopped importing them.

There is a glimmer of hope. The Government is expected to announce a more meaningful tax rebate formula for environmentally friendly vehicles. Environment Minister Yaacob Ibrahim gave a big hint early this year when he bravely acknowledged that the rebates introduced in 2001 'have not been sufficiently attractive'. He went on to say his ministry was working with the Finance Ministry 'to see how we can make it more attractive for environmentally conscious people to purchase green vehicles'.

If the scheme can allow a hybrid like the 1.5-litre Toyota Prius to be priced at $65,000 (about $5,000 more than an entry-level Corolla), and assuming its annual road tax can be halved to $437, it could become attractive.

Independent of incentives, at least one car agent is determined to re-introduce hybrids. Mr Vincent Ng, product manager at Honda agent Kah Motor, reveals the company will launch the new hybrid Civic in March next year because of 'an agreement with Honda Motor'.

Next year, Toyota will launch the Lexus GS450h, the first hybrid luxury sedan. The two Lexus hybrids [GS450h sedan, RX400h SUV] offer a slightly different proposition: more power, less guilt. Borneo Motors reveals that it will include it in its line-up next year.