higher

The cost of a gallon of fuel around the world varies so much I cant understand the economics. Governments tell us it's a global economy yet we see 50% - 100% difference in fuel costs.

Since I live in Europe ($6+ per gallon) the cost of fuel is definately infuencing the engine I have in my car, which is getting smaller and now always diesel.

Just look at the variation in cost, even accounting to average earnings, cost of production this is wild:

-US 2.5 - 3.5 $
-Europe 5-6 $
-Australia 3 $
-Japan 4.5 &
-Singapore 3.8 $

pukka

Move to one of the United Arab Emirates - when I was in Qatar gas was about 90 cents a gallon.

The main reason why the prices are so different is because the taxes levied by each country is different.

bigbadbull

How in the Hell is Gas cheaper in North Korea than in the USA? Does Kim really government subsidize things that much? :thumbsdown:

pjinca

Fuel consumption had a great influence on my purchase of my 530, I was coming from a V-8 powered Jeep that got a whopping 9 mpg and was costing me around $750/mo to keep full. That meant that the replacement car wasn't going to have a V-8 for sure.

kscarrol

Oil is a global commodity and the cost to refine is not a major variable. The variance in fuel prices you highlight is driven almost exclusively by taxes. European countries tax motor fuels much more than the US and other countries do.

studavis

Ok Boys and Girls, a little economics lesson from around the world. The difference we pay in gasoline is driven by three factors, Supply, Demand, and TAXES. Europe penalizes the drivers on their roads by making them pay a significant amount of gas tax towards their respective government budgets. Even the United States socks drivers a nickel a gallon for the national debt. The basic cost of fuel into most countries is essentially a function of the transportation costs. Larger consumers get a better break by economics of scale, and by the increase in competition. All we need to do is look at a gallon of gas here in Boise, Idaho. I am paying $3.20 for the good stuff. Out of this, 25 cents is going to the great state of Idaho to build and maintain roads. 18 cents is going to the federal government, five of which is for the national debt, and the rest to the highway trust fund. So if you subtract the taxes 43 cents, we end up with a base price 2.77. Around 68% of our fuel supply is imported, with most from Saudi Arabia. If we assume then, that the net cost of fuel in Idaho is 2.77, exclusive of taxes, then where does the other 2.77 go? In my professional judgment, based on the studies I have been privy too, the costs of pumping a gallon of oil out of the sands is around 65 cents per gallon. Tack on another 20 cents to transfer the oil to the tanker, over the sea, and to the refining process. This is around 15 cents a gallon, depending on the location. Then the fuel gets distributed to the local dude's big tanks. This is another 10 cents or so a gallon. Then the local dude parcels out the gas to the dealers, and then they put the additives in like nitrogen for Shell, or ethanol, or what ever, and this is another 15 cents a gallon. Then the fuel is distributed to your local station by trucks, at around 15,000 gallons a shot. Depending on the length of the trip between the local distributer and the station, this can add anywhere from 2 cents to 15. So what do we end up with? We end up with around 1.27 to 1.40 in hard costs. The rest is profit. Profit for the driller, profit for the shipper, profit for the oil company, profit for the refiner, profit for the distributor, the local distributer, and finally the gas station. Around 1.30 a gallon gets split between all these parties.... That is why there such a huge variation in the costs of fuel in the world.

or_550i

That's kind of a dumb assumption that all v8's get poor mileage. My 550 get 21 - 25 mpg. The life average has been 21 mpg.

pjinca

No actually it's not a "dumb assumption" or do you really believe in your tiny head that the V-8 gets better mileage than the I6? Seriously?

Also I was comparing the JEEP V-8 (SRT8) vs. my I6, not the 545 or 550 vs. the I6 (of which the I6 still gets better MPG)

higher

Wow ! If I got 21-25mpg I would be seriously getting rid of that car tomorrow, but then I am paying over $140 to fill my tank here in Europe. My MGP is up around 44-50MPG (diesel).

I do miss the old days of the 4.0 or 5.0 litre engines, sadly those are gone now in Europe.

AngelEyes

+1 my car does the same, its 525d and i can barely coap up with the consumption ! ENGLAND is no longer for cars !
do you know that if any new city is built now in the UK it won't have car roads !
they want to limit the polution, although we all know that the world is comin to an end at some point, so why not going to the end IN STYLE

by the way, i know this about the roads coz i work in construction, so.... its not local newspaper news, its actual government strategy !
i fill my tank for £70, and the new budget is coming this week, meaning the £70 will be even bigger