Why is gas only about a quarter in venezuela? Is it b/c the price of gas will affect the demand for it in certain countries, and that's how they set the price?
2007-05-08 02:22:14 · 6 answers · asked by Anonymous in Social Science ➔ Economics
Gas is more expensive in Europe because they have much stiffer taxes/tarriffs than we do in the U.S. We will likely soon follow in their footsteps and have a carbon tax ourselves (by soon I mean 10-20 years).
The reason gas is so cheap in places like Venezuela and Saudi Arabia is that the government subsidises it. Both countries make a lot of money off exporting oil from their own land, so they can afford to pay part of the price of gasoline for their citizens. The Venezuelan government is actually running into a bit of trouble because they are paying so much to keep gas prices low, they are building up more debt than they want.
A barrell of gas is pretty much the same everywhere, but in some places there are more taxes, while in others the government pays part of the price for you. Thus, you end up with all these different prices at the pump.
2007-05-08 09:25:41 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yeah, its the taxes. European nations for long have realized there should be high taxes on fuel. This discourages driving, and encourages public transportation. But in the U.S., cheap fuel was needed to allow car companies like GM sell cars. Then the spread of suburbia happened. Now that so many americans live far from public transit routes, and price of fuel is increasing, we're screwed.
Also, venezuela has 2 special characteristics: 1. its a major oil producing nation; 2. It's socialist-like. Oh, and the oil production is very much controled/owned by the government. Gas is cheap there because they produce it and therefore can sell it to themselves at a cheaper price than the market price. Yes, economically this is not optimal (not maximizing profits), but politically powerful. Hugo Chavez knows this, that's why a few years back (during the last presidential campaign I think) Hugo Chavez/Venezuela helped a New England area by providing heating gas at a discounted price.
2007-05-08 02:33:24 · answer #2 · answered by ccguy04 2 · 2⤊ 0⤋
it depends on where the gas is going and how much of it there is..ist inflation.. just like if there are only 3 gallons of gas left then those 3 gallons are really valuable.. so like in venezuela there are less cars than in america so less people are demanding the gas.
2007-05-08 02:27:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
several factors why gas in europe is more expensive...
1. the exchange rate
2. import taxes, subsidies etc.
3. Europe demands more oil than the US.
2007-05-08 02:54:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Probably because we can produce much of our own fuel and we have refineries here for processing it.
2007-05-08 02:46:59 · answer #5 · answered by Maria b 6 · 0⤊ 0⤋
if you took away the taxes they pay in the UK and the taxes we pay, they are actually paying less than we are........it's the taxes that kill europeans but companies are able to stick it to americans more..........
2007-05-08 02:25:57 · answer #6 · answered by Sizzle Pizzle 3 · 0⤊ 0⤋