If you think gas prices are expensive here, you've got to check out the prices around the globe. In fact, the US comes in at 108th out of a survey of gas prices in 155 countries. Most countries in Europe have been used to shelling out a great deal more per gallon. Check out how we rank:
Keep in mind that all gas prices are not created equal. The retail price is based on whether a given government taxes gas, as many European nations do, or subsidizes it as the US does.
The US government has been giving tax breaks to the oil and gas industry for years to keep the price of gas artificially low. Without these tax breaks, the industry would arguable pass on higher gas prices to the consumers at the pump.
Now while nobody wants to hear about further increases in gas prices, it's got to be asked why it is that the US government offers subsidies to one industry over another. According to the laws of supply and demand, they are messing with the whole system by keeping prices low to fuel the American gas addiction.
According to the Energy Information Administration, the artificial reduction in US gas prices has contributed to higher gas consumption. Since the 1980 the UK has had flat growth in gas consumption, France has seen a decline by 17%, and the US has increased its consumption by 21%.
You know where you really want to head for cheap gas: Venezuela has gas for 12 cents a gallon!
If you are interested in further information check out this piece on the real prices of gas.
Stay away from the pumps!
Miel
Wikinvest Wire
4 comments
Thank you for pointing out how prices in the US compare to most of the world, I have been surprised in all the coverage of "high" northamerican gas prices that this has been overlooked. Is is time to enter into living life the way most of the world does?
I found your blog when I searched CNN to see if there were any stories re: comparison with global prices, just to keep things in real perspective. This is the only reference I found. That is a sad statement on how the media adds to a worldview that only sees how we are affected and can't see ourselves within a wider perspective. Maybe we won't be so quick to complain next time we are at the pump when we know our counterparts elsewhere would think what we are paying is a bargain.
Thanks Anon -
Yes, that is a sad statement if we are the only folks in the media to be reporting on the comparison to gas prices around the globe.
I did an outback tour in Australia back in 1997. Back then, with the dollar very strong, it cost the equivalent of $50 every time we filled the tank. Since we were in remote areas, we had double tanks, making it $100 every time we filled the tank of the SUV we were in.
For a 3,000 mile trip we paid over $1,000 dollars in gas! Remember that this was ten years ago!
Keep this in mind when you head to the tanks.
Best,
Miel
From which source did you quote those prices?
Anon - I recall that it was sourced from a CNN article, but I don't have the link available at this time. Hope this helps.
Cheers,
Miel
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