The U.S. consumes more gasoline than any other country, and the average household spends about $2,000 a year on gas. But in the last few years, low gas prices have given millions of drivers extra money to spend or save.
In the rest of the world, gas prices tend to be higher. But the nominal price of gasoline doesn’t provide a complete picture of how expensive the fuel really is in a given country. In order to determine the affordability of gasoline (or any other product), you have to compare the price to income. A recent Bloomberg report compared gas prices in different counties to the average national paycheck to find where gas really is the most, and least, affordable.
In high-wage nations, expensive gas prices are by and large affordable for the population. For example, Norway’s gasoline price of $6.53 a gallon is the third highest in the world, but its average citizen earns nearly $200 a day. This combination means that Norway’s high prices are the 10th most affordable in the world. On the other end of the spectrum, Nigeria, Africa’s leading oil producer, boasts the 7th cheapest gas prices in the world at $1.94 a gallon. But when coupled with an $8 average daily wage, Nigeria’s gas becomes the 4th least affordable in the world.
Here are the 10 most and least affordable countries for gasoline when measured against average national incomes:
Most Affordable
1. Venezuela
Price per gallon: $0.02
Average daily wage: $16.14
Daily wages spent on one gallon of gas: 0.95 percent
2. Kuwait
Price per gallon: $0.88
Average daily wage: $68.69
Daily wages spent on one gallon of gas: 1.27 percent
3. United States
Price per gallon: $2.57
Average daily wage: $156.34
Daily wages spent on one gallon of gas: 1.64 percent
4. Luxembourg
Price per gallon: $4.69
Average daily wage: $285.13
Daily wages spent on one gallon of gas: 1.66 percent
5. Saudi Arabia
Price per gallon: $0.91
Average daily wage: $52.77
Daily wages spent on one gallon of gas: 1.72 percent
6. United Arab Emirates
Price per gallon: $1.80
Average daily wage: $90.13
Daily wages spent on one gallon of gas: 2.00 percent
7. Switzerland
Price per gallon: $5.58
Average daily wage: $213.60
Daily wages spent on one gallon of gas: 2.58 percent
8. Australia
Price per gallon: $3.57
Average daily wage: $134.27
Daily wages spent on one gallon of gas: 2.58 percent
9. Canada
Price per gallon: $3.45
Average daily wage: $110.41
Daily wages spent on one gallon of gas: 2.96 percent
10. Norway
Price per gallon: $6.53
Average daily wage: $190.47
Daily wages spent on one gallon of gas: 3.40 percent Related: Why Oil Prices Might Not Rebound Until 2019
Least Affordable
1. India
Price per gallon: $3.75
Average daily wage: $4.77
Daily wages spent on one gallon of gas: 80.20 percent
2. Pakistan
Price per gallon: $2.32
Average daily wage: $3.97
Daily wages spent on one gallon of gas: 56.71 percent
3. Philippines
Price per gallon: $3.17
Average daily wage: $8.14
Daily wages spent on one gallon of gas: 39.69 percent
4. Nigeria
Price per gallon: $1.94
Average daily wage: $8.00
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Daily wages spent on one gallon of gas: 34.85 percent
5. Egypt
Price per gallon: $2.66
Average daily wage: $10.25
Daily wages spent on one gallon of gas: 28.40 percent
6. South Africa
Price per gallon: $3.19
Average daily wage: $13.03
Daily wages spent on one gallon of gas: 23.64 percent
7. Indonesia
Price per gallon: $2.23
Average daily wage: $9.89
Daily wages spent on one gallon of gas: 22.36 percent
8. Thailand
Price per gallon: $3.44
Average daily wage: $16.23
Daily wages spent on one gallon of gas: 21.84 percent
9. Turkey
Price per gallon: $5.77
Average daily wage: $26.13
Daily wages spent on one gallon of gas: 21.22 percent
10. Bulgaria
Price per gallon: $4.05
Average daily wage: $18.93
Daily wages spent on one gallon of gas: 21.19 percent
By Emily Shah via The Fiscal Times
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Oil companies have been raping Americans for over 50 years it's time to stick it up their asss. There is no reason why gasoline should be more than $1.50 in the U.S.
It's the rich oil companies ripping off the public. If you can't see it you are either brain dead or the most naive person on this planet.
Average daily wage: $4.4
Daily wages spent on one gallon of gas: 79.54 percent (Like India) and doesn't appear in the list
Average daily wage: $4.28
Daily wages spent on one gallon of gas: 84.11%
Cambodia should be on the top of the list(sorry India)
Mexico: $3.86 per gallon... and increasing (low quality 87 octane)
Average daily wage: $4.74
Daily wages spent on one gallon of gas: 81.43%
A hugely influential factor is how accessible natural resources for day to day survival are to the ordinary citizen. Where nature provides, gasoline plays no role.
Another one is climate - how can you compare Nigeria and India, for instance, where winter heating is irrelevant, energy-wise to places like Canada, Norway, Switzerland, etc where every citizen requires heating for great portions of the year?