Global Gas Prices

by James & Miel on July 6, 2008 · 0 comments

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!


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