Soaring Fuel Prices Driven by Overseas Subsidies, NYT Says

By Joseph Galante

July 28 (Bloomberg) -- Fuel subsidies from the Mexican, Indian and Chinese governments have helped drive fuel prices in the U.S. higher, the New York Times reported.

The subsidies remove the incentive for consumers to curb fuel consumption, keeping demand and prices high, the Times said. BP Plc estimated that countries with fuel subsidies accounted for 96 percent of the global increase in oil consumption last year, the newspaper said.

To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net.