FIA Clubs Discuss Oil Markets & Motoring Taxation

Publication date: 18 January 2010

By Håkon Glomsaker / FIA European Bureau

Following last year's successful workshop on fuel prices and market competition hosted by the ÖAMTC in Vienna (Austria) the FIA European Bureau held a follow-up workshop on fuel markets, competition and motoring taxation on the 26th and 27th of November in Oslo (Norway), on the kind invitation of the Norges Automobil-Forbund (NAF).

Participants came from eight European FIA member clubs as well as the FIA European Bureau. The meeting, chaired by Håkon Glomsaker, Director, Club and Public Affairs, at NAF, offered an excellent opportunity for experts from AA, ACI, ACP, ADAC, NAF, ÖAMTC, RACC and TCS to share information and experience on those crucial issues to clubs.

In addition to competition in the fuel market and fuel pricing issues, the workshop also dealt with motoring taxation. At European and national levels, environmental pressures add-up to the increasing fiscal pressures: this in turns encourages governments to raise existing taxes and introduce new ones. The workshop addressed for instance the shift towards CO2 taxation and environmental tax incentives.

Club experts exchanged information about the developments in their national fuel markets and more specifically on the competition amongst the market players and pricing regulations and practices as well as the situation with regard to motoring taxation including motor fuel and motor vehicle taxation.

Following NAF’s invitation two guest speakers from the leading Norwegian leading oil and gas producer Statoil, Ms Pernille Saugmann Olsen and Mr Arve Rasmussen, gave an overview about the global oil price development, the global oil demand as well as the development of product prices and the product market. Participants then engaged into a discussion with the Statoil representatives about future trends in oil markets, oil stocks and the emergence of alternatives to oil as fuel for transport.

Christer Tonheim from NAF gave an overview of the Norwegian fuel market, addressing in particular price fluctuations, related Norwegian competition legislation as well as the guidelines on the Article 81 of the EC treaty. Using a more theoretical approach to the reasons for price fluctuations and price behaviour, he gave some interesting insights into the on going micro economics discussion of the fuel sector.

Luke Bosdet of the AA reported for instance that the club had pinpointed throughout the year 2009 the activities of stock market traders trying to drive up the price of oil and fuel. Through monitoring the market, analysing traders’ actions and their impact on pump prices and drawing media attention to market behaviour and the impact of high fuel prices on driver and family budgets, the AA has tried to counter the upward trend.

On the same issue of competition in the fuel market Gabriela Barreto from ACP reported about her club’s latest initiatives taken since the last workshop. Among other activities she reported about the meeting of ACP President Carlos Barbosa with European Commission President Durão Barroso on the 13th of March 2009.

Elisabeth Brandau from ÖAMTC presented an iPhone application informing club members about fuel prices at filling stations close-by and navigating them to the chosen station.

On the second workshop day, participants discuss discussed about motoring taxation, and exchanged information about planned and potential changes in taxation policy. In particular, they discussed recent trends in moving towards "greener" taxation and the related risks identified in terms of tax raises done in the transition phase. Participants also discussed specific consumer protection issues like double taxation (paying twice the same tax, for in different countries) and tax on tax (like value-added tax on fuel taxes).

The workshop was concluded by the draft of a resolution calling for more transparency in European fuel markets and a fair and efficient motoring taxation having the interests of mobile consumers at the centre of concerns.

For more information on the Workshop click here