MADRID: Spain announced Friday a series of energy saving measures, including cuts to the speed limit and lower prices for train tickets, in response to the rise in world oil prices due to unrest in the Middle East.
"The goal is to reduce the consumption of oil and gas to reduce our energy bill which has risen in recent days and which we do not forecast will drop," Deputy Prime Minister Alfredo Perez Rubalcaba told a news conference.
Spain has one of the highest dependencies in the European Union on fossil fuels for its energy needs and the spike in oil prices has added to pressures on inflation and the country's trade deficit.
Under the temporary measures which will come into effect on March 7, the speed limit on Spain's highways will be reduced to 110 kilometres (68 miles) per hour from 120 kph, Rubalcaba said.
They will also require an average of 7.0 percent of renewable content in all diesel and gasoline, up from 5.8 percent.
State-owned rail network Renfe will slash ticket prices on short- and medium-haul trips as well as on suburban commuter trains by up to five percent, he added.
Rubalcaba said the measures would be temporary but he did not say when they would end.
Earlier Friday, Brent North Sea crude for delivery in April rose 76 cents to $112.12 per barrel -- the highest level since August 22, 2008 -- before sliding back on profit-taking as supply worries persisted amid the escalating violence in oil-rich Libya.
Each increase of 10 euros in the cost of a barrel of oil adds some six billion euros to Spain's energy bill, Rubalcaba said.
"This is a very serious problem which greatly affects out economy," he said.
Spain imports about 13 percent of its oil from Libya and around 35 percent of its gas from Algeria, according to government figures.
The country has oil reserves that would last for over 90 days, Industry Minister Miguel Sebastian said earlier in the week.
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