The European Union should consider capping sales taxes on fuel products if oil prices rise further, French President Nicolas Sarkozy said on Tuesday, seeking to allay consumer fears about spiralling costs.

Ah, lower taxes on oil are sure going to help solve that "growing demand, stagnant supply" situation, right?

"We can't perpetually have a market where prices rise permanently, to the benefit of producing countries."

Yes. We. Can! (if we continue with our idiotic energy non-policies). I must admit that I am even more amazed at our politicians now that they are making the right descriptions of the energy market (saying, quite correctly, that oil is no longer cheap nor plentiful) - their lack of action when that diagnosis was absent was at least consistent, if irresponsible. Now, the contradictions are just stunning.

Given that voters seem to only care about how much their next gas tank will cost, and can't or won't grasp the consequences of short term fixes, it may be rational for politicians to pander to such denial.

One way or another, it's not going to last. But we're choosing the maximum pain route.