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Spain raises speed limit as oil price dips

Spain raises speed limit as oil price dips

Write: Dewi [2011-06-27]
The Spanish Government said Friday the maximum speed limit on the country's highway will return to 120 kilometers per hour on July 1 as lower oil price has made it less attractive for drivers to go slower to save fuel.
Spain lowered the maximum speed limit to 110 kilometers on March 7 to help drivers save money in the face of rising fuel costs.
Vice-President Alfredo Perez Rubalcaba said Friday that although the measure has saved the country around 450 million Euros, recent falls in the price of fuel mean that the measure is no longer needed.
"Circumstances have changes and the measure makes little sense with the new circumstances, so we will be returning to 120 kilometers an hour," announced Rubalcaba following Friday's cabinet meeting.
The cost of changing the speed limit signs was 230,000 Euros, but Rubalcaba mocked those who had said it was too high a price, by highlighting the 450-million-Euros saved.
"The saving hasn't been bad at all. People have driven more slowly and they have saved fuel," he said, adding that driving at 110 km an hour was "cheaper and causes less pollution."
The price of crude oil stood at 127 dollars a barrel and was expected to climb as high as 140 a barrel when Spain decided to reduce speed limits. It has now dropped to 106 dollars with further reductions expected in the near future.
Source:Xinhua Weekly review