Gas Prices Around the World

Even as gas prices in the U.S. ease off the peaks reached in 2022, Americans like to grumble about what we’re paying at the pump. But a look at gas prices around the world indicates that, well, things could be worse.

GlobalPetrolPrices.com, an energy data tracking company, puts U.S. gas prices in the bottom half of a global measure. And we pay the least for gasoline of any economically advanced country.

Have a look at how the U.S. compares with other countries, and then we’ll discuss what factors contribute to differences between nations.

Gas taxes are a big factor

So, why? Chiefly, taxes. While in the U.S. these vary considerably by state (and we’ve tracked the 10 states with the highest gas taxes as well as the lowest), on balance, gasoline taxes in the U.S. are low on a global scale. And again, among industrialized countries (the 38 members of the OECD (opens in new tab)) only Mexico has lower fuel taxes.

Nevin Valev, owner of GlobalPetrolPrices, says the U.S.’s low rate reflect Americans need – and desire – to drive long distances, and the political unpopularity of higher taxes. The summer price surge of 2022, for example, led to a variety of gas tax holidays or suspensions by a range of states.








 

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On the other hand, smaller countries like Denmark and the Netherlands collect gas taxes so high that they are well in excess of what’s needed to maintain roads – they’re used for other government spending, or to discourage consumption.

The U.S. dollar’s effect is significant

But taxes aren’t the only story. Currencies matter, too. Fuel is traded in U.S. dollars. So if a country’s currency weakens against the dollar (as, for example, the UK pound has in recent years), oil – and hence gasoline – becomes more expensive in that country – even if there’s been no change in the basic price of oil.

Those are, of course, oil-producing countries that can more easily subsidize domestic gasoline prices when oil prices are high. While the U.S. is an oil producer – and exporter – as well, it does not engage in this sort of market fiddling, with the exception of releases from the Strategic Petroleum Reserve. And in European countries with oil such as the United Kingdom and Norway, fossil fuels used domestically are heavily taxed.