https://sputnikglobe.com/20230903/what-country-has-the-highest-price-of-gas-1113089275.html

What Country Has the Highest Price of Gas?

What Country Has the Highest Price of Gas?

Sputnik International

Gasoline, has become one of the main economic growth drivers in several countries worldwide. However, this commodity is susceptible to several market dynamics that impact consumers, while the US holds a significant percentage share of global consumption.

2023-09-03T18:15+0000

2023-09-03T18:15+0000

2023-09-04T05:29+0000

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In today's interdependent world, the cost of gasoline, or just gas, has gained international relevance as a commodity of concern.Nevertheless, grasping the dynamics of the worldwide gasoline market is of utmost importance for market experts, government decision-makers, and ordinary citizens who rely on this indispensable resource to fuel their automobiles and maintain the flow of their daily lives.Sputnik explains the factors that influence gas prices, why they vary by country, the complexities of the global gasoline market, which country currently holds the highest gas prices, etc.What is Gasoline?Gasoline, a fuel synthesized from crude oil and assorted petroleum liquids through fractional distillation (an industrial process through which oil refineries isolate crude oil into various valuable hydrocarbon derivatives), is primarily used to operate vehicles and motor engines, for delivery and purchase at gas stations.Gasoline and petrol speak of the same substance. In the United States and North America as a whole, it's commonly known as gas, while in the United Kingdom and other Commonwealth member states, it's referred to as petrol.What Factors Affect Gasoline Prices?A complex interplay of various factors determines gasoline's price at the pump, each playing a crucial role in shaping the final cost consumers bear.Crude Oil PricesAt the gasoline price calculation's core is the cost associated with crude oil. Gasoline production relies heavily on crude oil as its primary raw material, and fluctuations in its price have an immediate and direct effect on gas prices.Geopolitical events and extreme weather can disrupt the crude oil and petroleum product supply chain, impacting their prices. Such disruptions create uncertainty, leading to higher price volatility. Oil prices are influenced by supply and demand inflexibility in the short term due to fixed production capacity and limited options for consumers to switch to alternative fuels or improve equipment fuel efficiency. Consequently, significant price changes may be necessary to restore supply and demand equilibrium.Supply and Demand FactorsThe fundamental concepts of supply and demand are just as relevant in the gasoline market. Seasonal changes, supply chain interruptions, and consumer demand alterations can influence gasoline pricing.Historically, gasoline prices have been subject to seasonal demands. They typically surge in the spring, reaching their highest point in late summer, when there's a spike in vehicle activity. Conversely, during the winter season, gasoline prices tend to drop.A decreased available gasoline supply concerning actual or expected gasoline demand increases gasoline prices.Rapid swings in gasoline prices can occur when interruptions impact crude oil supplies, processing facility activities, or gasoline transport logistics. Even if crude oil prices remain constant, gasoline costs may vary due to periodic shifts in demand and modifications in gasoline standards.For example, back in 2004, crude oil producers were caught off guard by unexpectedly high rise in global demand, resulting in inadequate crude oil production. Consequently, crude oil prices surged, as there wasn't enough supply to satisfy the escalating demand at the prevailing price points. These sharp hikes in worldwide crude oil prices, in turn, triggered substantial increases in gasoline prices, according to a 2005 US Federal Trade Commission study.Exchange RatesThis deals with the relative value of one currency compared to another, which wields a powerful influence on gasoline prices in countries that rely heavily on oil imports. The relationship between exchange rates and gas prices is complex, as these factors are inextricably linked.Fluctuations in exchange rates can lead to price volatility, impacting the affordability of gasoline for consumers. When a country's currency strengthens against the currency in which oil is priced (typically the US dollar), gasoline imports become cheaper, and pump prices tend to drop. Conversely, oil import costs rise when a nation's currency weakens, often leading to higher gas prices.A classic case is the strengthening of the euro, which moderated the increase in oil prices in 2004. In terms of US dollars, oil prices jumped by 34 percent throughout 2004, while in euros, the increase was 24.2 percent. Nonetheless, since the start of 2005, the euro's weakening against the US dollar has contributed to a steeper price hike – 38.2 percent in euro terms compared to 30.5 percent in US dollar terms, noted a European Central Bank May 2005 publication.Government Taxes and RegulationsCountries worldwide impose taxes and regulations on gasoline to achieve various economic, environmental, and social objectives. These taxes can vary significantly from country to country and account for a substantial portion of the final gas price. Examples include a gasoline tax of about $0.50 per liter in Japan as of 2022, while US federal taxes and other fees on retail gasoline is 18.4 cents per gallon, as of July 1, 2023.How is Gasoline Sold at Retail Outlets in US Regions?Source: EIAWhat Country is the World's Biggest Consumer of Gasoline?The United States of America holds the record for the highest gasoline consumption in the world as of 2022 data.Source: EIAHow Much Gasoline is Consumed in the US?The United States consumed roughly 3.2 billion barrels of finished motor gasoline in 2022. On average, this amounted to approximately 8.78 million barrels per day, according to EIA data.Petroleum product consumption in the United States is predominantly led by gasoline, the primary fuel for transportation. Gas consumption is influenced by several factors, such as gas pump prices, employment rates, disposable earnings, weather conditions, fuel economy regulations, the distance covered by vehicles, etc.Gasoline regular grade retail price including taxes, US average for each quarter in 2023:Which US States are the Biggest Consumers of Gasoline?While gasoline consumption varies among states, the largest percentages of total motor gasoline consumption in the United States are held by Texas (11 percent) and California (9 percent), according to official data. Other states include Florida (6 percent), New York (4 percent), and Georgia (4 percent).What is the Percentage Share of Total US Petroleum Use by Sector?How Big is the Global Gasoline Market?Expert forecasts indicate that the international gasoline market will rise from $125.94 billion in 2022 to $128.21 billion in 2023, driven by a compound annual growth rate of 1.8 percent. Moreover, by 2027, it is expected to attain a value of $136.81 billion, with a CAGR of 1.64 percent. Notably, North America held the largest gasoline market share in 2022, while the Asia-Pacific region is poised to register the highest growth during the projected duration.The gasoline market comprises retailing a range of gasoline products:What are the Top 10 Countries in Gasoline Consumption?Source: The Global EconomyWhat Country Pays the Highest Gasoline Price?Sputnik’s research found that the gasoline (standard petrol pump price) in Hong Kong is about $3.06 per liter (conversion rate as of Sept. 3, 2023) - the most expensive in the world.What are the Top 10 Countries With Expensive Gasoline Prices?Source: GlobalPetrolPrices.comIn Which Countries Does Filling a Tank of Gas Drain Your Salary?Source: Statista

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