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Gasoline and diesel usage and pricing

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For information on the price of oil, see price of petroleum.
Example from Germany 2007, 1.319 €/L=US$7.65/gal
Average gasoline prices around the world, May 2008. Brighter-coloured countries have more expensive gasoline.

The usage and pricing of gasoline (petrol) results from factors such as crude oil prices, processing and distribution costs, local demand, the strength of local currencies, and the availability of local sources of gasoline (supply). Since fuels are traded worldwide the trade prices are similar, the price paid by consumers largely reflects national pricing policy: some regions, such as Europe and Japan, impose high taxes on gasoline; others, such as Saudi Arabia and Venezuela, subsidise the cost.[1] Western countries have among the highest usage rates of gasoline per person. The largest consumer of gasoline is the United States, which used an average of 386 million US gallons (1.46 gigalitres) of gasoline each day in 2005.[2]

Gas price modifiers

Strong and increasing worldwide demand for petroleum has caused gasoline prices to fluctuate.[3] Weather has also affected the available supply of gasoline. Hurricanes Katrina and Rita reduced the supply of refined oil in the US in 2005.

Seasonal demands affect gasoline prices. For example in the past, many families in the US have chosen to take vacation drives in the summertime, thus gas prices have usually increased 5% in these months.[4]

OPEC countries also have significant control on pricing of petroleum. Its members control 40% of the crude oil production around the world and have two-thirds of the world crude oil reserves.[4] OPEC sets production levels for its member countries in order to keep oil prices at a target level. However, some peak oil analysts doubt[citation needed] OPEC still has the spare production capacity to significantly reduce petroleum prices (although it still has the ability to increase prices).

In a June 2008 OP-ED article responding to US Congressional hearings on the practice of oil speculators, Jon Birger wrote that oil "speculators" are not raising the price of oil. He attributes the current oil prices to actions of Congress.[5]

Gasoline usage and pricing in the United States

US gasoline prices from 1919 to 2007 (real and inflation adjusted)
Long-term US gasoline prices, 1990-2007 (adjusted for inflation using the US CPI).

Despite high demand in the country and despite rising fuel costs, gasoline prices are low in the United States when compared with most other Western countries. As of August 10, 2008, the United States average price of self-serve regular unleaded gasoline was $3.85/gal.[6] Finished motor gasoline amounts to 44% of the total US consumption of petroleum products.[7] This corresponds to 18.5 Exajoules per year. According to national figures from the US Department of Energy, in March 2007 52% of the cost of gasoline went to pay for crude oil, 24% for refining, 15% to taxes, and 9% for distribution and marketing. By April 2008, these had changed to 72.7% for crude oil, 10% for refining, 11% to taxes, and 6% for distribution and marketing.[8]

In 2008, a report by Cambridge Energy Research Associates stated that 2007 had been the year of peak gasoline usage in the United States, and that record energy prices would cause an "enduring shift" in energy consumption practices.[9] According to the report, in April gas consumption had been lower than a year before for the sixth straight month, suggesting 2008 would be the first year US gasoline usage declined in 17 years. The total miles driven in the US began declining in 2006.[10]

Gasoline usage and pricing in Europe

Most European countries have high fuel taxes. The prices have traditionally been three to four times the price in the United States, with prices during 2000-2005 of €1/litre (about US$1.54/l or $5.82/gal) while the US had prices around $1.50/gal or $0.40/l. In 2007-2008, the market price before taxes has risen, raising the price of gasoline everywhere. However, the price of gas in Europe is still more than double the US price. Russia and some neighboring countries have a much smaller tax, with gasoline prices similar to the US. [citation needed]

Countries with subsidised gasoline

A number of countries subsidise the cost of gasoline and other petroleum products. Subsidies make transport of people and goods cheaper, but discourage fuel efficiency. In some countries, the soaring cost of crude oil since 2003 has led to these subsidies being cut, causing inflation and political unrest.

Fuel subsidies are common in oil-rich countries. Venezuela, which has vast oil reserves, maintains a price of Bs.F 0.097 per litre (around US$0.05), and has done so since 1998.[11] Other countries with subsidised fuel include Iran, Saudi Arabia, Egypt, Burma, Malaysia, Kuwait, China, Taiwan, South Korea, Trinidad and Tobago, Brunei and Nigeria. The Australian state of Queensland also subsidises fuel at the rate of A$0.08354 per litre.[12]

China

In China, where the state oil companies are restricted from passing on new crude costs to their consumers, auto sales were predicted to grow by up to 15-20% in 2008. This is in part a result of economic growth rates of over 10% for five years in a row.[13]

Indonesia

In March 2005, Indonesia increased the price of gasoline and diesel by 29%, causing widespread protests. The price of gasoline was raised from Rp 1800 (US$0.20) per litre to Rp 2400 (US$0.25) per litre, while diesel rose from Rp 1650 (US$0.18) to Rp 2100 (US$0.23). Prices were increased again in October to Rp 4500 (US$0.48) a litre, an 87.5% rise, for gasoline, while diesel was increased to Rp 4300 (US$0.46), and kerosene, used for cooking, increased from Rp 700 (US$0.08) to Rp 2000 (US$0.22) per litre. The price increases came as oil prices threatened to increase the government's oil subsidy to US$14 billion per year, and caused further protests.

With oil reaching over US$130 a barrel, Indonesia further increased prices on May 24 2008 to Rp 6000 (approx. US$0.65) per litre, and diesel to Rp 5500 (approx. US$0.60) per litre, while kerosene was raised to Rp 2500 (approx. US$0.28), moves which caused widespread protests.[14] In addition, it was suggested that private car owners, who are wealthy in Indonesian terms, would eventually be excluded from subsidies entirely, with the cheap fuel limited to public transport and motorcycles.

People have been encouraged to switch to LPG for cooking, as Indonesia is the world's largest exporter, whereas its oil industry is in decline, and it is now a net importer.

Malaysia

Malaysia spends US$14 billion subsidising gasoline, diesel and gas each year.[15] Effective 5 June, 2008 gasoline prices increased by 40% to RM2.70/litre (US$3.30 a gallon), from RM1.92/litre (US$2.32 a gallon). Diesel prices rose by RM1.00/litre to RM2.58 (US$3.04 per gallon), a 67% increase. It was announced that price increases were planned to bring fuel prices in line with global market cost, suggesting that it may hit US$3.80 per gallon by August. The Malaysian government has also announced a yearly cash rebate of RM625 per year to Malaysian citizens who own cars with an engine capacity of 3,000 cc or less and RM200 tax rebate to cars with an engine capacity of 3,000 cc and above to offset the increased costs.[16] The government introduced a temporary ban on buying fuel within 50km of the country border, but the ban was suspended following a price increase on June 7, 2008 for petrol of 41% (to MYR2.70 a litre) and for diesel of 63% (to MYR2.58).[17]

On 22 June, 2008 the Malaysian government announced plans to set up separate pumps at its border petrol stations to sell fuel to foreigners at market rates so that only locals can benefit from subsidised petrol. The new pumps will target Singaporeans and Thais who make day trips across the border to fill their tanks with cheaper fuel here. Petrol stations within 50km (31 miles) of the country's northern border with Thailand and southern border with Singapore would be affected.[18] On 22 August, 2008 Malaysia will cut the petrol price by 5.6 percent to 2.55 ringgit (0.76 dollars) a litre due to a drop in global oil prices. The diesel price will also fall by 3.1 percent to 2.50 ringgit a litre with effect on the same day. The government's announcement comes just three days ahead of a crucial by-election contested by opposition figurehead Anwar Ibrahim in the northern Penang state. Anwar, who is bidding to return to parliament after a decade-long absence, has promised to cut fuel prices substantially if he wins the poll and later wrest power from the ruling coalition. [19] Recently, the fuel price has dropped until MYR 2.45 and it has dropped for the second time.

Mexico

Mexican president Felipe Calderón has been subsidizing gasoline. This serves to quell inflationary pressures in Mexico. Mexico buys much of its gasoline and diesel from the United States and resells it at US$98 per barrel. Many residents of US border communities cross the border to buy fuel in Mexico[citation needed], thereby enjoying a fuel subsidy at the expense of Mexican taxpayers. This has caused supply shortages for Mexican drivers, especially truck and bus drivers who use diesel.[20]

Average gasoline prices around the world

See fuel tax for tax information by country.

The German Technical Cooperation (GTZ) has published a list of worldwide gasoline prices by country every year since 1991. The results for 2007 can be seen on page 96 and 97 of this document

For a recent updated list of gas prices from around the world, see interactive from Portfolio magazine

See also

References

  1. ^ Deutsche Gesellschaft für Technische Zusammenarbeit. "International Fuel Prices 2007" (PDF).
  2. ^ Rong-Gong Lin II and James F. Peltz, Don Lee (2005-03-28). "Drivers Keep On Pumping, Paying". Los Angeles Times. Retrieved 2008-09-18.
  3. ^ EIA primer on gasoline prices
  4. ^ a b EIA Primer on Gasoline Prices
  5. ^ Fortune Magazine "Don't blame the oil 'speculators'" By Jon Birger June 27, 2008
  6. ^ "Average gasoline prices slip to $3.85/gal: survey". Reuters. 2008-08-100. {{cite web}}: Check date values in: |date= (help)
  7. ^ US Energy Information Administration. "US Product Supplied for Crude Oil and Petroleum Products". Retrieved 2007-05-25.
  8. ^ Energy Information Administration. "Gasoline and Diesel Fuel Update".
  9. ^ Ana Campoy (June 20, 2008). "Prices Curtail U.S. Gasoline Use". Wall Street Journal. p. A4.
  10. ^ Clifford Krauss (June 19, 2008). "Driving Less, Americans Finally React to Sting of Gas Prices, a Study Says". New York Times.
  11. ^ Venezuela: Land of 12-Cent Gas
  12. ^ Scheme overview - Background information
  13. ^ Joe Mcdonald (April 21, 2008). "Gas guzzlers a hit in China, where car sales are booming". Associated Press.
  14. ^ AFP: Indonesian police, protesters clash over fuel price hike: reports
  15. ^ "Malaysia to lift fuel price controls". Associated Press For Petrol price : old price = rm$1.92/litre (US$0.59/litre or US$2.22/Gallon) increase to new price rm$2.70/litre (US$0.83/litre = US$3.12/Gallon, base on US$1 = RM$3.27); For Diesel price : old price = RM$1.58/litre (US$0.48/litre or US$1.83/Gallon) increase to new price RM$2.58/litre (US$0.79/litre = US$2.98/Gallon, base on US$1 =RM$3.27);. 2008-06-03. Retrieved 2008-07-20. {{cite news}}: Unknown parameter |Author= ignored (|author= suggested) (help); line feed character in |work= at position 18 (help)CS1 maint: extra punctuation (link)
  16. ^ "Malaysia considers cash handouts as fuel hike looms". Associated Press. 2008-06-04. Retrieved 2008-06-04. {{cite news}}: Unknown parameter |Author= ignored (|author= suggested) (help)
  17. ^ "Malaysia lifts ban on fuel sales to foreigners". Reuters UK. 2008-06-05. Retrieved 2008-06-05. {{cite news}}: Unknown parameter |Author= ignored (|author= suggested) (help)
  18. ^ "Malaysia to set up separate border petrol pumps for foreigners". Channel Newsasia. 2008-06-22. Retrieved 2008-06-22. {{cite news}}: Unknown parameter |Author= ignored (|author= suggested) (help)
  19. ^ "Malaysia cuts fuel price by 5.6 percent". Yahoo! News Newsasia. 2008-08-23. Retrieved 2008-08-23. {{cite news}}: Unknown parameter |Author= ignored (|author= suggested) (help)
  20. ^ [http://online.wsj.com/public/article/SB121426584632198453-_wjnmFYCNcbM6jFvYcx2zPf03Xs_20080723.html?mod=tff_main_tff_top Wall Street Journal: "Fill 'er Up: Gas Is Cheap in Tijuana, So Californians Buy Big Fuel Tanks" By JOEL MILLMAN and ANA CAMPOY June 24, 2008; Page A1]
  21. ^ voordeligtanken.be claims EUROSUPER 95: €1.489 in Belgium
  22. ^ a b c Latest European Petrol Prices 2008-05-12: Euro per litre, unleaded: Belgium 1.44, Germany 1.368, Greece 1.077, Netherlands 1.535, Italy 1.37, Spain 1.083, France 1.323, Ireland 1.169, UK 1.388, USA 0.538
  23. ^ International Gas / Petrol / Diesel prices - Belgium gasoline-Germany 2008-05-12 reports €1.46 at AVIA
  24. ^ a b GASOLINE -- International gas price schadenfreude Jonathan Drew, The Daily American, |2007-05-16, per gallon, Cairo, Egypt: $0.86 in May 2007
  25. ^ Price notifications for Egypt €0.17
  26. ^ a b c "U.S. gas: So cheap it hurts". By Steve Hargreaves. May 6, 2008. CNNMoney.com.
  27. ^ Moscow Fuel Association, Retail Gasoline Prices lastaccessed=2008-10-27
  28. ^ Saudi Arabia Market Information Resource and Directory lastaccessed=2008-05-7
  29. ^ Saudi Arabian Embassy
  30. ^ [1]
  31. ^ "Sri Lanka sharply raises fuel prices". AFP. May 24, 2008. Retrieved 2008-06-08. {{cite news}}: Check date values in: |date= (help)
  32. ^ "Sri Lanka increases fuel prices with immediate effect". Colombo Page. May 25, 2008. Retrieved 2008-06-08. {{cite news}}: Check date values in: |date= (help)
  33. ^ gas by county price lastaccessed=2008-08-01
Country/Territory US$/L US$/gal Local units Date of price Sources
Australia 0.937 3.55 AU$1.482/L 2008-10-13 [2]
Bahrain (Manama) 0.27 1.02 BHD 0.100/L (95 Octane)
BHD 0.080/L (90 Octane) 		2008-04-29 [3]
Belgium (Brussels) 2.48 9.39 €1.60/L 2008-06-20 [21][22][23]
Brazil (São Paulo) 1.59 6.02 R$2,59/L 2008-04-29 [citation needed]
Brunei 0.39 1.48 BR$0.53/L 2008-06-05 Brunei Press Sdn Bhd [4]
Canada 1.0540 3.99 CA$1.05402/L 2008-10-26 GasBuddy.com [5]
Chile 1.27 4.81 CLP 605/L 2008-05-29 [6]
China 0.806 3.05 RMB 6.05/L 2008-06-20 [7]
Colombia 1.07 4.05 $7400/G 2008-05-24
Croatia 1.65 6.25 HRK 8.62/L 2008-10-09 INA Unleaded 95 [8]
Cyprus 1.87 7.08 €1.16/L 2008-06-07 [9]
Denmark (Copenhagen) 2.46 9.31 DKK11.50/L 2008-05-28 [22]
Dominican Republic 1.51 5.72 RD$194.80 2008-05-27 [10]/diariolibre.com
Egypt (Cairo) 0.32 1.21 2008-05-05 [24][25]
Eritrea 2.53 9.58 2008-05-06 [26]
Estonia 1.79 6.78 EEK 18.10/L (95 Octane) 2008-06-20 [11]
Finland 2.36 8.93 €1.517/L 2008-05-28 [12]
France 2.13 8.06 2008-05-06 [26]
Germany 1.99 7.53 €1.45/L (Super unleaded 95 RON)
€1.37/L (Diesel), Average prices 		2008-10-09 [13]
Greece 1.95 7.38 €1.20/L 2008-09-15
Guatemala 1.95 7.38 $4.76/L 2008-05-12
Honduras 1.07 4.05 Lps. 81.00/G 2008-05-26
Hong Kong 1.14 4.32 HK$8.83/L (Unleaded)
HK$9.65/L (Diesel) 		2008-10-23 Shell Hong Kong/[14]
Hungary 1.985 7.51 HUF 315/L 2008-05-15
Iceland 2.25 8.52 ISK 171.20/L 2008-05-27 Olís/[15]
India (NOIDA) 1.36 5.15 INR 52.50/L 2008-06-18
Indonesia 0.84 3.18 Rp 8300/L (RON 95)
Rp 7950/L (RON 92)
Rp 9100/L (Diesel) 		2008-10-16 Shell Indonesia[16]
Iran 0.11 0.42 1000 rials/L up to 120L/month, 4000 rials/L for more 2008-06-27 Fars News Agency/[17]
Ireland 2.02 7.65 €1.30/L 2008-08-03 Pumps.ie -Ireland's fuel price website
Israel 1.83 6.93 NIS 6.35/L 2008-10-01 Israel Min. of National Infrastructures (Hebrew)[18]
Italy 2.32 8.78 €1.49/L 2008-05-18 [22]
Japan 1.60 6.06 ¥171.7/L 2008-06-16 The Oil Information Center Japan[19]
Kuwait (Kuwait City) 0.21 0.79 KWD 0.060/L (91 RON)
KWD 0.065/L (95 RON)
KWD 0.090/L (98 RON) 		2006-09-06 [20]/Kuwait National Petroleum Company
Latvia 1.57 5.94 €1.07/L 2008-08-21 Lukoil
Lithuania 1.16 4.39 LTL 3.24/L (A95) 2008-10-29 Lukoil
Luxembourg 1.60 6.06 €1.164/L 2008-10-09 [21]
Malaysia 0.66 2.50 MYR2.30/L (RON97)
MYR2.20/L (RON92)
MYR 2.20/L (Diesel) 		2008-10-15 [22]
Mexico (Mexico City) 0.62 2.35 MX$6.80/L 2007-05-05 Banco de Información Económica/[23]
Moldova (Chisinau) 1.24 4.69 MDL 13.85/L 2008-06-20 [24]
Monaco 2.20 8.33 2008-05-06 [26]
Netherlands 2.67 10.11 €1.69/L (Euro 95)
€1.76/L (Super 98) 		2008-06-10 United Consumers [25]
New Zealand 1.17 4.43 NZ$1.72/L 2008-10-11 Pricewatch/fx.com on 2006-09-29
Nigeria (Lagos) 0.595 2.25 N70/l 2008-06-07 [26]
North Korea 1.19 4.50 267.96 KPW/l (retrieved 2008-07-20) [27], estimated
Norway (Oslo) 1.74 6.59 NOK 12.48/L (RON 98)
NOK 12.13/L (RON 95)
NOK 12.25/L (Diesel) 		2008-10-27 Shell/[28]
Pakistan 1.03 3.90 Rs 81.66/L (Unleaded)
Rs 68.14/L (Diesel) 		2008-10-16 PSO/[29]
Peru (Lima) 1.609 6.09 PEN S/. 4.59/L (95 Octane)
S/. 4.76/L (Super 98) 		2008-05-27 PSO/[30]
Philippines (Cebu) 1.22 4.62 P 61.40/L 2008-06-02 Shell Philippines
Poland (Krakow) 2.06 7.80 PLN 4.45/L 2008-06-06 [31]
Portugal 2.42 9.16 €1.537/L (95 Octane)
€1.677/L (98 Octane)
€1.438 (Diesel) 		2008-07-01 Galp official price MaisGasolina
Qatar (Doha) 0.22 0.83 QAR 0.75/L (97 Octane)
QAR 0.67/L (90 Octane) 		2007-09-17 [32] / The General Secretariat for Development Planning - State of Qatar
Romania (Bucharest) 1.78 6.74 RON 3.98/L 2008-07-31 [33]
Russia (Moscow) 0.908 3.44 RUR 26.00/L (RON 98)
RUR 24,83/L (RON 95)
RUR 23,48/L (RON 92)
RUR 20,51/L (RON 80)
RUR 24,04/L (Summer diesel) 		2008-10-27 [27]
Saudi Arabia (Riyadh) 0.12 0.45 SAR 0.45/L (91 Octane)
SAR 0.60/L (95 Octane) 		2008-07-31 [28][24][29]
Sierra Leone 4.86 18.40 14400 Leones/L 2008-05-01 [30]
Singapore 1.19 4.50 S$1.870/L (RON 98)
S$1.796/L (RON 95)
S$1.763/L (RON 92)
S$1.553/L (Diesel) 		2008-10-23 Singapore Petroleum Company[34]
Slovenia 1.46 5.53 €1.086/L 2008-10-19 Petrol
Serbia 1.73 6.55 RSD 104/L (95 Octane) 2008-10-10
Sri Lanka 1.46 5.53 LKR 170/L (95 Octane)
LKR 157/L (90 Octane)
LKR 110/L (Diesel) 		2008-06-08 [31][32]
South Africa 0.94 3.56 R9.41/L 2008-10-01 SASOL [35]
South Korea 1.95 7.38 1,960 KRW/L 2008-06 2007 GTZ[36]
Spain (Madrid) 2.14 8.10 €1.36/L 2008-06-20 [37]
Sweden 1.41 5.34 SEK 11.54/L (RON 98)
SEK 11.40/L (RON 96)
SEK 11.24/L (RON 95)
SEK 11.89/L (Diesel) 		2008-10-27 JET[38]
Switzerland (Zurich) 1.88 7.12 CHF 1.95/L 2008-05-28
Thailand 0.86 3.26 N/A Baht/L (RON95)
29.39 Baht/L (RON91)
23.44 Baht/L (Diesel) 		2008-10-25 PTT[39]
Taiwan 1.05 3.97 34.6 TWD/L, 95 unleaded 2008-06-08 [40]
Trinidad and Tobago 0.48 1.82 $3TTD/L 2008-05-26
Turkey 2.72 10.30 YTL 3.48/L 2008-04-22 internethaber/[41]
Turkmenistan 0.08 0.30 TMM 400/L 2006-11-25 Turkmenistan.ru/[42]
UAE 0.37 1.40 AED 6.25/Imperial gal (95 Octane)
AED 6.75/Imperial gal (98 Octane) 		2008-05-27 [43]/Bahrain Tribune
Ukraine 1.237 4.68 UAH 6.0/L 2008-09-22
United Kingdom 1.57 5.94 105.8p/L (Super)
98.6p/L (Unleaded)
111.0p/L (Diesel) 		2008-10-26 petrolprices.com
United States 0.698 2.64 $2.64/gal 2008-10-26 [33]
Uruguay (Montevideo) 1.6 6.06 U$ 32/L 2008-01-12
Venezuela (Caracas) 0.03 0.11 Bs. 97; BsF. 0.097 2008-04-06 [44]
Vietnam 0.98 3.71 VND 16,000/L (RON 95)
VND 15,500/L (RON 92)
VND 14,500/L (Diesel) 		2008-10-17 Petrolimex[45]
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