What are the countries with the most expensive and cheapest gasoline in the world?

What are the countries with the most expensive and cheapest gasoline in the world?

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Putting gasoline in the car is usually quite banal in most countries, but depending on where you live the impact in your pocket can be very different.

Although gasoline (or diesel) is sold throughout the world, the conditions that determine its price are very different. And the reasons that make it increase, too.

The price of fuels is subject to many different variables . They tend to influence government aid, taxes, the price of a barrel of oil, anti-inflationary policies or if a country has to import oil or, on the contrary, can produce it.

All this can change the price of a liter of gasoline dramatically, making a country pay up to 200 times more than another.

But the purchasing power of the consumer also influences. For example, although the price of gasoline is very high in the Netherlands and very low in Bolivia, this does not mean that gasoline is very expensive for the Dutch or very cheap for Bolivians. Everything will depend on your purchasing power .

Worker supplies a vehicle.
Copyright of the REUTERS image
Image caption The price of gasoline depends on many factors, such as government subsidies or taxes.

The cheapest ones

Venezuela is the country that has the cheapest gasoline in the world , among the 167 countries and territories analyzed by the consultancy Global Petrol Prices in its most recent weekly report, published on May 28 of this year.

* At US $ 0.010 per liter, gasoline in Venezuela is still incredibly cheap despite the fact that the country is going through an economic crisis with galloping inflation.

But Venezuela has the largest oil reserves on the planet. And despite the economic collapse that lives, the Venezuelan government continues to subsidize the price of fuel.

By contrast, Saudi Arabia, the second country in the world in oil reserves, is in 13th place in terms of price, and the liter of gasoline costs 54 times more than in Venezuela: US $ 0.54.

  • Venezuela – US $ 0.010

  • Iran – US $ 0.28

  • Sudan – US $ 0.34

  • Kuwait – US $0.35

  • Argelia – US $0.36

Gasoline is also very cheap in Iran (US $ 0.28 per liter), in Sudan (US $ 0.34 / liter), both large producers in both Asia and Africa, respectively. In Kuwait the liter costs US $ 0.35 and the ge ia , the fifth cheapest costs US $ 0.36 / liter.

Keeping these prices so low to finance part of the gasoline to their citizens, these countries renounce to obtain income by exporting the oil at international prices, where the benefit would be much higher.

Gas station in Venezuela.
Copyright of the AFP image
Image caption Gasoline continues to be very cheap in Venezuela.

In the last year, the price of oil rose and if this road continues, as many foresee, the cost of keeping gasoline so low may be much higher.

The most expensive

What may be surprising is the list of countries with the most expensive gasoline.

Iceland is the most expensive country to buy gasoline. According to Global Petrol Prices, the liter costs US $ 2.15. The Chinese territory of Hong Kong is ranked number two with US $ 2.14 / liter, 194 times more expensive than in Venezuela.

But undoubtedly, something that draws attention is the position of Norway on this list. It is the third most expensive country to buy gasoline (US $ 2.05) despite being one of the largest producers and exporters of oil in the world.

The explanation is that, instead of subsidizing fuel, the Norwegian government has created high taxes to restrict limiting the use of private cars and encouraging public transport .

The money that it obtains from oil exports, the country uses it to nourish the Sovereign Fund of Norway , which is used to try to diversify the economy, taking into account that the reserves will one day be exhausted.

The same logic applies in the Netherlands where the liter of gasoline costs US $ 1.97, occupying the fourth place on the list and followed by Monaco , Greece and Denmark , all three in fifth place with the price of a liter of gasoline at US $ 1, 92

Greece, for example, was forced to raise the price of gasoline to adjust its finances as one of the requirements of its international creditors.

Israel , which ranks 10th among the countries with the most expensive gasoline at US $ 1.86 a liter, also applies very high taxes on fuel.

Image of Reykjavik
Copyright of the GETTY IMAGES image
Image caption Iceland applies large taxes on oil and is the most expensive country to fill the deposit (as of 05/30/2018).

The reason is, on the one hand, that it hardly produces its own oil and has to import it, and on the other, the Israeli government assures, that it is “a resource produced mostly by nations that are not friends of Israel and that are even hostile. “

How the price is set

According to the Brazilian company Petrobras, the final price of gasoline paid by the consumer is composed of three parts : one is the price established by the importing or exporting country, another the taxes imposed by the government and finally the benefit that the take out the final seller.

As can be seen in the graph, the proportion of the factor that has a greater impact on the price changes from country to country. And it is that each country has specific political circumstances and even different diplomatic relations that are also transferred to what citizens pay to fill their cars with fuel.

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