IEA head says high oil prices unjustified

27 October 2004

BRUSSELS – A Belgian initiative to put a freeze on petrol price taxes could lose momentum after the head of the International Energy Agency predicted that world oil prices are likely to retreat in 2006.

“The supply and demand do not justify current prices,” Claude Mandil, the agency’s executive director, said.

Mandil also pleaded with governments to be pro-active in developing new technologies to “meet our growing energy needs without compromising our energy security and environment.”

In its World Energy Outlook 2004 released Tuesday, the organisation said that petroleum and other fossil fuels would continue to dominate global energy use.

Earlier this week Belgian Prime Minister Guy Verhofstadt called for a freeze on petrol excise taxes in his country to allow lower prices for consumers.

However, in a television interview he said the government had not yet decided on any concrete measures.

Subject: Belgian news