Analysis by Cassia Paz
Although the price of fuel has fallen over the past few months, you may still be feeling some pain at the pump. Although prices are below their 2022 peak, they remain elevated compared to some of the prices seen in the past 5 years.
Even though we are not pleased with the current retail prices, the good news is that we’re not the nation paying the highest prices at the pump. In fact, The United States has one of the lowest costs compared to other wealthy countries.
Now, let’s dive into the facts!
1 – According to Global Petro Prices, Americans pay around $3.33 per gallon of regular gasoline and $4.57 for diesel. Yes, we know there can be significant differences in gasoline prices from one state to another, with western and pacific states facing the costliest gas in the nation.
2 – Hong Kong has the highest gas price per gallon, with prices recently at $11.20! How happy would you be paying around $168.00 to fill up a 15-gallon tank?
3 – Norway is not too far from Hong Kong when it comes to gas prices. I’m sure you’d love to live in the Nordic country and enjoy all its natural beauty, not to mention the famous northern lights. But what about paying around $8.29 per gallon of gas? I bet you would be bike commuting every day!
4 – How about the lowest prices? Venezuelan drivers pay around $0.06 per gallon of gas. How is this possible? The country, which has one of the world’s largest crude oil reserves, heavily subsidizes its fuel prices for citizens.
5 – Iran is another oil-rich country where people can stay thrilled at the pump. The average amount spent on a gallon of gasoline is $0.20. Sanctions keeping Iranian oil stuck at home and government subsidies help keep that price very low.
As a simple rule, the wealthiest countries have higher retail prices, while other countries – including the ones that produce and export oil — have significantly lower prices. The cost of gasoline may also be affected by government policies, such as taxes and regulations, market forces, competition among gas stations, and the cost of transportation to different regions.