Cabinet sheds light on energy saving plan to cut oil dependency

The Cabinet on Friday approved an energy saving plan aimed at reducing Spain's oil imports by 28.6 million barrels- 4.5 percent of total imports- annually, which in conjunction with other measures the government estimates will save state coffers up to 2.3 billion eurosa year.

Among the measures to be introduced, the most controversial has been the reduction of the speed limit on Spanish highways from 120 km/h to 110 km/h. The new mark will come into effect on Monday and remain in force until at least July.

"Sometimes it is necessary to take measures, even if they are unpopular," Deputy Prime Minister Alfredo Pérez Rubalcaba said. "With [the price of] a liter of gasoline at a historical high [at around 1.30 euros] we must save because our economic recovery is on the line. Spain is a country that for a long time has believed energy is free and it isn't. It is very expensive."

The reduction in oil imports is expected to save the economy in the region of ?1.5 billion a year. The remainder of the forecast saving will hinge on the rolling out of further energy saving measures, including low-consumption lighting in municipal buildings; a 20-euro subsidy for each tire changed to a more efficient model; and a five-percent reduction in regional train fares in Madrid and Catalonia. The government on Friday announced its willingness to pick up the tab for the price cut, estimated at 26 million eurosby the Catalan regional government.

The switchover to energy saving light bulbs will be immediate in municipalities with fewer than 200 inhabitants, while town halls with over 25,000 on its rolls with have five years to carry out the task. Industry Minister Miguel Sebastián said that 30 million euros is available to fund the scheme.