Why are gasoline prices so much higher in Europe then they are in the United States?

Question

I have been told by Europeans that gasoline prices are about three times the price in European countries than in the United States. A citizen of England told me that he cannot understand why Americans complain paying $2.50 one gallon of gasoline when the British have to pay over $8.00 for just one gallon in American Dollars. I citizen in Germany told me that most families can afford just one car and you have to rely on public transportation just to get around.
My question is, why are gasoline prices so high in Europe then they are in the United States?

Answer 1

we buy in bulk

Answer 2

Since you're a Conservative I'd like to add more fire to your question. When I was in fifth grade (1956) we had an exchange student from Scotland who worked with my dad on our dairy farm in Up State NY. I'll never forget the day I was filling a reel type gasoline lawnmower with the student standing beside me. I spilled a tablespoon or two of gas when filling the gas tank. I thought he was having a heart attack as he came unglued when I spilled the gas. He gasped that Gasoline cost 74 cents a gallon in Scotland. At that time our gasoline was 19 cents per gallon. I was just a dumb little kid at the time but that summer afternoon I'll never forget.

I honestly don't have an answer for you. My only worry these days is how to dispose of Senator Hillery in one of our Finger Lakes. I'm choosing Seneca because it's 690 feet deep and very few bodies are ever found.

Answer 3

The simple answer has to be that European governments like the tax revenue.

In the US on the other hand, the government likes to please the oil lobby so prices are low to encourage consumption and increase oil company profits. The result is that the average vehicle in the US consumes several times the fuel of the average European vehicle.

We now know that burning petroleum based fuels is a major factor in planet warming - so it turns out that the European level of fuel prices are a good idea. They go a long way towards encouraging people to minimize fuel consumption. However no party in the US would dare increase taxes on fuel - voters and energy industry lobyists would crucify them.

Answer 4

Well for many reasons .. first of all in Europe they sell it by the litre and that is I gal is .2642 litres and the US gallon is smaller then the imperial gallon so 1 Imperial ( UK ) gallon would equal 1.2 U.S. liquid gallons ....
The gas has to be refined and shipped there .. The US has its own oil although they get most from other countries and stock pile there own .. but in a lot of European countries they depend on others for there oil supplies so there is added cost for refining and transporting .. there are places in S America where gas is only pennies a gallon .. but that's because they have an abundance of oil and very little tax which is a killer when it comes to gas prices ..
Most oil prices are dictated by OPEC .. who are in turn dictated by money and oil companies have to answer to stock holders who make money from oil profits .. boy .. this could take forever.. alot of what we pay for everything is greed , labour , taxes and supply and demand ..

Answer 5

Because of the taxes European governments put on them. It is to discourage people from driving and instead use public transportation.

The first answer is bs! If the demand for a product goes down, so does the price. When people don't want the fuel, you don't raise the price to keep profits up. You have to lower the price to get people to buy it. Take an econ class.

Answer 6

The only problem is income....we don't make enough money to keep up with the expense of gasoline. Consider the amount of minimum wage and the number of people that are earning it. If we all made $100K per year, no problem....raise it now. There are so many people at poverty level how do they afford to pay for gas to get to work.

Answer 7

wow bungee, what a sh!t, stereotypical theory!
Actually the current rate for 'gas' (petrol here!) in the UK is only £3.07, which is about $5.44. I dont know what the rest of Europe is.
This is because the US has significantly more oil reserves than Europe so we have to buy it at the normal rate, on top of EU taxes! In the UK especially we do have an excellent public transport system and they try to get us to use it more to cut down on petrol consumption.
Count yourself lucky! lol

Answer 8

because the us gov buy more oil than they need and have sufficient amounts in reserves in the mexican gulf, alaska and around various north american coastlines. britain for example doesnt have this so has to rely on buying oil at the market rate. increase prices means greater tax on consumers. in the us they will always have enough oil so they dont necessarily have to buy when prices are high.

Answer 9

they drive all those tiny cars which use less , the refiner still has the same cost so he must charge more to make money.