Gasoline costs roughly the same to make no matter where in the world it's produced, according to John Felmy, chief economist for the American Petroleum Institute. The difference in retail costs, he said, is that some governments subsidize gas while others tax it heavily.
In many oil producing nations gas is absurdly cheap. In Venezuela it's 12 cents a gallon. In Saudi Arabia it's 45.
The governments there forego the money from selling that oil on the open market - instead using the money to make their people happy and encourage their nations' development.
Subsidies, many analysts say, are encouraging rampant demand in these countries, pushing up the price of oil worldwide.
In the U.S., the federal tax on gas is about 18 cents a gallon, pretty low by international standards.
Bogged down, Most expensive places to buy gas
Rank Country Price/gal
1. Sierra Leone $18.42
2. Aruba $12.03
3. Bosnia-Herzegovina $10.86
4. Eritrea $9.58
5. Norway $8.73
6. United Kingdom $8.38
7. Netherlands $8.37
8. Monaco $8.31
9. Iceland $8.28
10. Belgium $8.22
111. United States $3.45
Cruisin',Where gasoline is cheapest
Rank Country Price/gal
1. Venezuela 12 cents
2. Iran 40 cents
3. Saudi Arabia 45 cents
4. Libya 50 cents
5. Swaziland 54 cents
6. Qatar 73 cents
7. Bahrain 81 cents
8. Egypt 89 cents
9. Kuwait 90 cents
10. Seychelles 98 cents
45. United States $3.45
155 countries surveyed between March 17 and April 1, 2008. Prices not adjusted for cost of living or exchange rates.
Correction: A previous version of this chart showed Russia as the 8th cheapest country to buy gas. Russia is the 38th cheapest.
http://money.cnn.com/2008/05/01/news/international/usgas_price/?postversion=2008050109
