Gasoline and diesel usage and pricing
Most countries impose taxes on gasoline (petrol), which causes air pollution and climate change; whereas a few, such as Venezuela, subsidize the cost.According to the Energy Information Administration (EIA), as of March 2022, factors that affect the price of gasoline in the United States include the price of crude oil per barrel, costs and profits related to refining, distribution, and marketing, and taxes, along with the charge set by refiners for gasoline based on based on octane levels, with higher octane levels—premium grade cost about 68 cents per gallon more than regular grade in 2021.In 2021, with the average price increased to $3.01/gallon, crude oil accounted for 53.6%, taxes for 16.4%, distribution and marketing for 15.6%, and refining costs and profits, for 14.4%.[15] On the supply side, OPEC (or the Organization of the Petroleum Exporting Countries) has a great deal to do with the price of gasoline, both in the United States and around the world.The price of transporting crude oil to a refinery then gasoline to a point of distribution is passed on to the consumer.Extreme weather, war or natural disaster in areas where oil is produced can also in turn raise the price of a gallon of gasoline.In some countries, the soaring cost of crude oil since 2003 has led to these subsidies being cut, moving inflation from the government debt to the general populace, sometimes resulting in political unrest.Countries with subsidized fuel include Saudi Arabia, Iran, Egypt, Burma, Kuwait, Bahrain, Trinidad and Tobago, Brunei, Venezuela, Ecuador and Bolivia.On 26 December 2010, the Bolivian government issued a decree removing subsidies which had fixed petrol/gasoline and diesel prices for the past seven years.[21] Venezuela used to have the cheapest gasoline in the world for decades, however on 19 February 2016 president Nicolás Maduro used decree powers to raise fuel prices by 6000%.The price reform was particularly important in gasoline, as consumption had been increasing dramatically creating a huge burden on government budget.The energy price reform included a cash-rebate program through which each person received 455,000 rials ($15 US) per month from the government.[26] In May 2016 the Buhari administration increased fuel prices again to NGN 145 per litre ($0.43 at black market rates for the currency).[30] In 2017, Mexico ended its oil industry subsidies, leading to increased prices and widespread protests throughout the country.In 2021-22, gasoline and diesel prices surged in the United States, reaching record highs, as part of a larger trend of inflation.[36] The average price of regular gasoline rose from $1.773 during the week of April 27, 2020, to $5 as of June 11, 2022, an all-time high.[42] In 2014, Malaysia abolished fuel subsidies and began using a managed float system, in order to control the country's large current account deficit.
Federal Taxes
State Taxes
Diesel fuel
(Left)
Gasoline
(Left)
Crude Oil Price (WTI)
(Right)
Difference from 1 year prior
Difference from 1 year prior
crude oil pricessubsidyair pollutionclimate changeVenezuelanegative externalitiespolluter payUnited StatesRBOB Gasoline PricesCambridge Energy Research Associatesenergy consumptionHurricane KatrinaHurricane Rita1973 oil crisisGovernment Accountability OfficeEnergy Information AdministrationCrude oilFuel taxes in the United Statesexcise taxgasolinediesel fuelHighway Trust Fundinflationfuel taxsupplydemandcorporate average fuel economy1979 energy crisisearly 1990s recessionGulf WarGreat Depressionfuel taxesSainsbury'sMorrisonsEnergy lawEnergy policysubsidize fossil fuelsSaudi ArabiaKuwaitBahrainTrinidad and TobagoBruneiEcuadorBoliviaan energy price reformSmuggling in Iran2007 Gasoline Rationing Plan in Iranwidespread protestsPetrotrinUnited States energy lawCrude Oil Price (WTI)The oil industry receives subsidiesCaliforniaJoko WidodoMalaysiaAlbaniaAlgeriaAngolaAnguillaBangladeshCentral African RepublicDenmarkFinlandGermanyGreeceIcelandIrelandKazakhstanLiechtensteinMonacoNetherlandsNigeriaNorwayRussiaSingaporeTurkmenistanAutomobile costsWayback MachineNew York TimesIranian targeted subsidy planFinancial TimesThe New YorkerFederal Reserve Bank of St. LouisAmerican Automobile AssociationInternational Institute for Sustainable DevelopmentForbesUS News & World ReportHindustan TimesThe Times of IndiaRice UniversityBaker Institute For Public PolicyUnited States Government Accountability OfficeConde Nast PortfolioPetroleum industryPetroleumPrimary energyBenchmarksArgus SourBonny LightIndian BasketIndonesianIsthmus-34 LightJapan CocktailOPEC Reference BasketWest Texas IntermediateWestern Canadian SelectConsumptionProductionReservesImportsExportsPosted oil priceExplorationCore samplingGeophysicsIntegrated asset modellingPetroleum engineeringReservoir simulationReservoir modelingPetroleum geologyPetrophysicsReflection seismologySeismic inversionSeismic sourceDrillingBlowout