US Gas Prices Still Much Lower than the Rest of the World

Gas prices compared!

The current average gas price at the pump is $3.55, according to gasbuddy.com. It is quite low compared to the price that consumers in other countries pay.

 

The actual market value of gasoline costs between $2 and $0.90 more than the U.S. consumer actually pay due to government subsidies.

 

For instance, in Turkey the government finds fuel tax relatively easy to enforce relative to other taxes. Gas costs $9.98 at the pump. A large percentage of the labor force (40%) works under-the-table jobs and do not pay taxes. This is the reason for fuel tax as an important source of income that Turkey cannot afford to alter.

 

Even in oil producing countries, consumers pay much more than U.S. consumers pay. Norway is such an example, where Norwegians pay $9.97 per gallon. No subsidies are given in Norway at the pump. The oil profits are used to provide free college education and infrastructure development.

 

Europeans pay around $6 to $10 more per gallon than Americans do.

 

On the other hand, gas is very cheap in oil producing countries situated in the Middle East such as Kuwait and Saudi Arabia where consumers pay $0.80 and $0.45 per gallon at the pump, respectively.

 

Even more cheap in Venezuela at $0.04 a gallon! According to calculations from Bloomberg, with $1.56 a consumer can fill up a 39-gallon tank of a Chevrolet Suburban. In the U.S. it would cost $137.28 and in Turkey $389.22.

 

In India gas costs $4.36 per gallon, which seems comparable to U.S. gas prices. However this is a misconception, due to the difference in per capita income which is much lower in India than in the U.S. An average Indian worker earns in one day 16 per cent less than the cost of the price of a gallon, while in the U.S., the average price per gallon is equal to less than half of the federal minimum wage for an hour of work.

1 Comment on "US Gas Prices Still Much Lower than the Rest of the World"

  1. Nice posts! 🙂
    ___
    Sanny

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