The price of a gallon of gasoline varies wildly around the world. Among the largest producing nations, consumers in Saudi Arabia and Kuwait currently pay less than $1 a gallon for gasoline. Where gasoline is most expensive is where it is heavily taxed, imported or both.
While abundance is a large factor in low-price nations, social engineering is another. In Ecuador, not a particularly large producer, drivers pay an average of $1.48 a gallon. U.S. gas prices rank 20th on the list compiled by Global Petrol Prices at $1.99 a gallon. The data were collected on February 22.
One of the big changes at the bottom of the list came about two weeks ago when Venezuela raised its gasoline price from around 12 cents a gallon to a current level of $3.61 a gallon. Venezuela’s coffers have been hit especially hard by the drop in crude oil prices. The heavy oil the country produces is expensive to get out of the ground, and because the government has used the profits to keep other social programs running, government investment in new production has all but stopped and foreign producers are all but extinct.
The low prices for gas in Saudi Arabia and Kuwait are probably no big surprise, but there is at least one surprise in the list of the five countries with the highest prices. In at least three of the five, the high cost of gasoline is down to the country’s tax regime. The government wants to discourage gasoline consumption and levies big taxes to make that happen.
In one country, which is very small and loaded with wealth, everything is expensive and the people who live there generally can afford to pay the high price.
But in the city where gasoline prices are highest, a combination of demand, the necessity of importing every drop of refined fuel and taxes lead to the top ranking for high gasoline prices. For European countries the price is based on a gallon of premium unleaded gasoline, according to OECD data for 2013.
Denmark
One of three European countries among the five highest-priced, the average price of a gallon of gas is $5.86 a gallon. Drivers pay a value-added tax (VAT) rate of 25%, an energy tax, a CO2 tax, a sulphur tax and a nitrogen oxides tax. As a percentage of the total price, taxes make up nearly 54% of what consumers pay for a gallon of fuel.
Monaco
In a country where a McDonald’s burger, fries and drink costs nearly $10, it should be no surprise that gasoline costs $6.17 a gallon. And if that seems a bit high, rent for a one-bedroom apartment in the center of the city runs about $4,920 a month. To buy an apartment in the city costs nearly $4,700 per square foot.
Netherlands
Residents of the Netherlands are currently paying $6.22 for a gallon of fuel. Included in that price is VAT of 21% and other taxes of $1.39. Of the total price for a gallon of fuel, taxes account for 62%.
Norway
One of the world’s premier producers of crude oil, Norwegians pay $6.26 a gallon for gasoline, of which about 58% is taxes.
Hong Kong
Though officially part of China, Hong Kong is still treated as a separate entity for many purposes. One is the price of gasoline, currently $6.69 per gallon. According to a government report, the amount of tax on a liter of unleaded gasoline in the city is $6.06. That doesn’t really add up, especially because Hong Kong has no refineries and must import every bit of fuel the city consumes.
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