Spanish drivers slow down amid Libya oil chaos

Spanish drivers slowed down Monday, obeying a new speed limit designed to reduce energy use as oil production chaos in Libya sends fuel prices soaring.

The maximum highway speed limit dropped from 120 kph (75 mph) to 110 kph (68 mph), and government workers spent the weekend plastering speed limit signs with new stickers.

Reaction from drivers was mixed. Some cheered the move because it will lower fuel consumption and probably reduce accidents, but others questioned whether the savings justify longer driving times.

"I don't know if this is really going to save the money the government thinks it will," taxi driver Jesus Gonzalez said. "And for us, it is really uncomfortable to drive (this slow)."

The fine for violating the new speed limit is euro100 ($140). Drivers who exceed the limit won't be penalized on Spain's new points-based driving licenses, but many are expected to obey anyway because Spaniards are hurting financially, with unemployment of more than 20 percent and grim Spanish economic growth prospects.

Drivers will have to go above 150 kph (93 mph) to face penalties affecting their licenses.

Officials said the new speed limit and a host of other energy-saving measures are essential because Spain depends on imports for 75 percent of its energy, compared to the European Union average of 60 percent.

The new highway speed limit runs until June 30 and could be extended, meaning it's uncertain how fast European drivers will be able to go when they flock to Spain for summer vacations.

The national speed limit reduction is reminiscent of a U.S. law put in place in 1974 that reduced highway speed limits to 89 kph (55 mph). That widely disliked law was eventually changed to allow 105 kph (65 mph) speed limits on major highways, and U.S. states now set their own limits. Some western U.S. states allow 129 kph (80 mph) in remote rural areas.

Spain and other European nations depend heavily on Libyan crude, and Libyan oil production has been drastically curtailed amid intense fighting between government forces and rebels trying to oust Libyan leader Moammar Gadhafi.

Prices rose above $106 a barrel Monday in Asia on fears of a prolonged cut in crude exports from Libya.