When filling up your tank with gas and watching the numbers tick up, you may think you have it worse than everybody else.
Not so, according to data collected by Global Petrol Prices, an industry-wide fuel price tracker. Out of 170 countries analyzed, America has the 40th least expensive gasoline, placing it in the top quarter for the cheapest in the world.
As of July 15, the average price of gasoline in the world was $1.33 per liter — or $5.02 per gallon.
Here’s how prices break down by country, as well as reasons for why some citizens enjoy extraordinarily cheap gas while others pay far more at the pump. As for the U.S., there are deep price differentials among the states, too. All pricing is accurate at time of publication.
Countries With the Least Expensive Gas
Want to drive a vehicle for the lowest possible price? You’ll have to do so far from the US. The latest figures from Global Petrol Prices show the 20 countries with the cheapest gas in U.S. dollars, as of July 15, 2024. Converted into price per gallon:
— Iran – $0.11
— Libya – $0.12
— Venezuela – $0.13
— Egypt – $1.06
— Algeria – $1.29
— Angola – $1.29
— Kuwait – $1.30
— Turkmenistan – $1.62
— Malaysia – $1.66
— Nigeria – $1.80
— Kazakhstan – $2.00
— Bahrain – $2.01
— Bolivia – $2.05
— Qatar – $2.18
— Oman – $2.35
— Saudi Arabia – $2.35
— Russia – $2.44
— Azerbaijan – $2.45
— Iraq – $2.46
— Sudan – $2.65
According to Jonathan Ernest, an assistant economics professor at Weatherhead School of Management at Case Western Reserve University, there’s a number of explanations for the rock-bottom prices in these countries.
[Read: Best Gas Apps to Save You Money]
“Overall it’s based on forces of supply and demand,” Ernest says. “And most of these countries are in the Middle East where there is a lot of supply and not much demand. They also don’t have a lot of extra costs with taxes, and don’t have to transport oil because its coming out of the ground.”
Another reason, according to Tom Seng, an assistant professor at the Neeley School of Business at Texas Christian University, is subsidization.
“Every single one of these countries on this list produce some level of oil, so they do have supply, but some like Saudi Arabia also sell crude oil and gas at a discount to their own residents,” he says.
Countries With the Most Expensive Gas
And now for the nosebleed section. Global Petrol Prices reported that the 20 countries with the most expensive gas as of July 15 are:
— Uruguay – $7.32
— Wallis and Futuna – $7.40
— San Marino – $7.42
— Mayotte – $7.42
— Finland – $7.44
— Albania – $7.47
— France – $7.51
— Norway – $7.82
— Switzerland – $7.86
— Singapore – $7.87
— Greece – $7.87
— Barbados – $7.92
— Italy – $7.95
— Liechtenstein – $7.99
— Israel – $8.12
— Netherlands – $8.33
— Iceland – $8.69
— Denmark – $8.73
— Monaco – $8.78
— Hong Kong – $12.36
There are many reasons gas is significantly more expensive in these counties.
“Some of these are tiny nations that can’t dig it up out of the ground,” Ernest says. “Instead, they have to have billions of gallons shipped in then have to figure out how to get it refined. That’s expensive.”
There is also a lack of large-scale bargaining power. Without it, they don’t get the best price at purchase.
Another reason may be a country’s efforts to move away from fossil fuel due to environmental concerns and the attempt to stem climate change. Adding taxes increases the price and decreases usage.
[Related:How to Save Money on Gas at Warehouse Clubs]
“Some European countries are making an effort to reduce driving, so they tax and discourage it,” Ernest says. “In the short run, people may take fewer trips, but in the long run it is to make an easy transition to other modes of transportation.”
For example, in 2023 the Netherlands, which has the fifth-most expensive gas in the world, also had the highest gas tax in the European Union, at $3.25 per gallon.
Italy (eighth on the most expensive gas list) applied the second-highest tax rate at $3 per gallon. Finland (16th on the list) applied the third-highest gas tax at $2.98 per gallon.
Why Gas in the U.S. Is Relatively Cheap
Global Petrol Prices found that the latest average price of gas per gallon in the U.S. was $3.82 on July 15, 2024.
Certainly it’s a bargain compared to Hong Kong’s $12.36 per gallon and not too far away from many countries in the Middle East, where prices are at the bottom of the scale.
“We are huge consumers and huge producers,” Ernest says of the U.S.
“There is high demand but also a large and easy-to-tap-into supply. But in the U.S. we get a lot of seasonality that affects gas prices. In the summer people take a lot of road trips, so prices usually increase,” he adds.
[READ: Is It Cheaper to Drive or Fly This Summer?]
Not that the relatively low cost eases the financial sting, especially when you are driving many miles a month so have to fill up the tank frequently.
“When we talk about energy, the average person’s mind automatically goes to gas,” Seng says.
“That three-digit number is staring them in the face when they go to the station. Some people can cut back on driving and save money, but I feel for the independent contractors who have to fill their truck or van up for work. They have no choice,” he adds.
There is a wide range in gas prices for each state, though. According to AAA’s latest figures, the cheapest states for regular gas per gallon, on average, are:
— Mississippi – $3.005
— Arkansas – $3.062
— Tennessee – $3.110
— Louisiana – $3.116
— Oklahoma $ 3.146
— Texas – $3.151
— Kansas – $3.166
— Missouri – $3.183
— Alabama – $3.188
— Nebraska – $3.216
— South Dakota – $3.237
Meanwhile, the most expensive states for gas are:
— New York – $3.627
— Pennsylvania – $3.680
— Alaska – $3.850
— Illinois – $3.858
— Oregon – $4.000
— Nevada – $4.006
— Washington – $4.272
— Hawaii – $4.687
— California – $4.753
Many of the discrepancies in gas prices by state can be explained by those that are rich in oil.
[Read: How to Budget for Rising Gas Prices]
“For instance, Texas is number one for production and refining capacity of any state, so prices are low,” Seng says “However, you also have to look at the geographic element. Anywhere in and around the Rocky Mountains will be tough to transport oil so prices will be higher.”
As for the state with the highest gas prices in the country, that’s California, which Seng describes as an outlier. It both produces and refines gas.
In fact, according to the California Energy Commission, under normal conditions there’s enough output to meet demand inside the state and export to other areas.
So, why is gas in California so much harder on consumer’s wallets than anywhere else in the country? A combination of factors, like higher state taxes and costlier gasoline production.
California also requires a specific blend of fuel that emits fewer greenhouse gasses. “It burns at a lower emission, and that’s expensive,” Seng says.
Wherever you are in the world, though, don’t expect prices to remain the same. They change constantly, due to a huge number of determinants from political alliances and trade agreements to taxes and tariffs. And oil spills destroy supply and require a labor-intensive clean up.
“Sometimes there are huge changes in price because of a real disruption in supply, too, like a cyber attack on the pipeline that occurred in 2021,” Ernest says. “People ran out to buy gas before it ran out, and the prices went up. It’s such a dynamic market.”
More from U.S. News
How Transportation Costs Impact Inflation
Shopping Tricks to Keep You Under Budget
Best Gas Credit Cards of {{ MONTH_AND_YEAR }}
A Look at Gas Prices Around the World originally appeared on usnews.com
Update 07/18/24: This story was published at an early date and has been updated with new information.
