What Countries Have the Cheapest Gas

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Gasoline prices in U.S. fluctuated wildly between 2007 and 2009, and this had many Americans wondering exactly what countries have the cheapest gas. Although the answer may vary monthly or even daily, several countries have much cheaper gas than the U.S. on a regular basis.

What Affects Global Gas Prices

The price of gas varies around the world, from as low as mere cents in some places to as high as around $10 a gallon in others. More than just the cost of drilling, producing and refining crude oil goes into the cost of gasoline. Things that affect worldwide gas prices include:

  • Taxes: Countries can tax gas sold to its citizens at whatever rate they want. In 2009, the federal gas tax in the U.S. was at 18.4 cents per gallon. The cheapest gas within the U.S. also depends upon the state and local taxes levied.
  • Subsidies: Not every country will pass on the full cost of a gallon of gas to their citizens. Some governments provide large subsidies, or grants of money, to keep prices down.
  • Importation Costs: Countries that import crude oil or gas may have to pay fees or additional taxes on crude oil or gas brought into the country instead of produced and refined at home. Transportation costs are also a factor. The American Petroleum Institute (API) reports that the U.S. imports over 60 percent of its oil.

Other factors individual to particular countries and regions, such as natural disasters, supply and demand, and consumption rates, also affect the cost of gas around the world.

What Countries Have the Cheapest Gas

The countries that have the cheapest gas are the ones that produce large amounts and subsidize heavily. These countries often have very low gas prices, often under $1:

  • Venezuela
  • Saudi Arabia
  • Iran
  • Iraq
  • Kuwait
  • Egypt

Though American consumers may feel as though they pay high prices at the pump, compared to other nations, they do not. According to AIRINC data reported by CNN, U.S. gas prices in 2008 were the 45th cheapest out of 155 countries surveyed. This means the U.S. ranks in the top third for what countries have the cheapest gas.

In contrast, westernized European countries like the United Kingdom, France and Germany, all had prices of over $7 per gallon during the same time period, placing them in the top ten costliest places to purchase gasoline.

More Global Gas Information

To learn more about what countries have the cheapest gas and why, visit these websites:

True Cost of Gasoline

As you find information about cheap gas prices, remember to check the methodology of gathering and reporting of data. Do the reports take into consideration the exchange rate, or the citizen's average salary, or cost of living for that country? These things can all affect the true cost of a gallon of gas.

While it may seem like it is impossible to find cheap gasoline in my area, the cost of U.S. gas is fairly low when compared to the international marketplace. Though of course, gas prices could always be cheaper, they could always be higher, too. Use tips to save gas in order to stretch your dollars and gallons further.

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