It has been a while since i wanted to make a few comparisons between european and american nations as to the price of gas. I just never got around to it.

We all know how high the american public values their oil, and how the entire US economy revolves around the cheap price of gas. And of course, the gas-guzzling SUVs!
In my country, the price og gas has risen (again), for the third time this year. We have now broken the 1 Euro barrier, with regular and unleaded gas costing a little over 1 Euro per litre. What is strange, is that the price of crude oil hasn´t changed that much! The OPEC nations seem to have the entire global economy by the balls, changing prices and production numbers at will, while the smallest nations suffer dearlly with it.
I was especcially baffled by how the ordinary american feels utterlly robbed by the rising prices of gas, when they pay about 5 times less than we europeans pay for that same gas!
The average cost of gas in the US is $1.78 a gallon.

READ HERE ABOUT GAS PRICES ON THE RISE IN THE U.S.

Now, if i remember my measures class correctly, there are 5 litres in a gallon, right? And the Euro is worth about 1.25 US dollars (i don´t follow the stock market to know the exact number). Well, if my math is correct (i am very poor at math), the average american pays almost 5 times less for their gas. How the hell can such a huge diference exist, if the oil comes from the same place and the gasoline is produced the same way??
On one hand, the price of gas has provoked a huge change in mentality, especcially amongst the auto industry, pressured to produce more economic and reliable engines. It also provoked changes in the energy industry, in the form of renewable energy sources like wind and solar.
But the question remains:
Why haven´t the global prices balanced a bit more? Howcome such huge discrepancies still exist?
I think the european governments have grown acostumed to having a crutch to lean in, every time they needed to get out of a negative deficit situation.
Thanks to the Stability Pact, our government has risen the price of gas and gas taxes several times to coap with the need of lowering the national budget deficit, and thus not getting a yellow card from Brussels.
Everytime a govt. needs some cashflow, they raise the gas privces a bit more, because it´s so easy, and it´s there for the taking.

On the american side, the low prices of gas have diferent consequences. Amongst many, one of them is the need for a constant supply of crude oil, to maintain production rates and keep the average price low. I believe this is the reason behind the US´s willingness to pursue the resources in any way possible, even if that means invading oil rich nations like Iraq. The US needs to keep the oil flowing, otherwise the price will rise and the entire economy will colapse. Amongst other things, of course.

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"Quincitilius Varus, give me back my legions!"
Emperor Augustus of Rome.

1 gallon is about 3.8 liters.
Gas is in part cheaper because the US produces a lot itself and only depends to about 40% on foreign oil, where in most countries in europe 99% comes from the outside.
Also, about 5 years ago a gallon of unleaded cost me 88 cents in Texas. In light of this, we doubled and at times more than doubled the cost without increasing taxes on it.
Most of the European cost of fuel is not coming from the manufacturer (although they oversell nicely) but you also have about a 50% taxation on the gas.
see the top 100 gas prices here:
http://www.nationmaster.com/graph-T/ene_gas_pri
and another article that nicely answers your questions:
http://www.caa.ca/e/news-issues/btw/...01-05-10.shtml

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Grisu, the numbers provided on that link are over 4 years out of date.
I want something regarding 2003/2004.

Sidestep:
Speaking of oil, and Dick Cheney, here´s some interesting reading material:
http://www.judicialwatch.org/071703.b_PR.shtml

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=33642

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"Quincitilius Varus, give me back my legions!"
Emperor Augustus of Rome.

The taxes have not gone down anywhere over there! The implementation of the Euro made everything more expensive as well. I don't have the time to dig up exact numbers on who taxes what on their gas but those 4 year old numbers are actually fairly representative for Europe's quest to tax its citizens and economy to death!

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Maybe if oil keeps rising in cost (to us), maybe we will compensate by finding ways to make oil less important to our society.

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