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Originally posted by St_Andrew So right now a liter of gasoline in Europe is somewhere around 1.7 USD ($6.5 per gallon), which is really quite a lot compared to the american prices. However, some ppl are now for the first time haveing a serious debate to cut the prices. Imagine if taxes were cut to 0, useing the logic of supply and demand, if most countries in Europe did that, wouldn't that mean gas price would go up to almost the same level again, since demand would increase? Or is the demand in Europe not big enough to have such an effect on the price? Anyway, someone with some better knowledge on this, please enlighten me

I hear what you're saying. Here in the UK most of it is tax etc, so if they reduced prices, they'd just tax us somewhere else. No-win situation really as far as that's concerned. I can't see the prices rising that drastically without tax, maybe a bit, but nowhere near what they are now

since gasoline is a necessity i dont think demand will change much. however im sure the companies will find a reason to quickly raise the prices to what they are now.