Not only the price of gasoline in the retail market plays a role, but also what is the average monthly income of the citizen, in order to be able to cope with a fixed expense and not to get the expenses of the family budget out of high levels.
The war in the Persian Gulf, restrictions on the passage of crude oil cargoes through the Strait of Hormuz, and the jump in international oil prices a few days ago have led many countries to a new wave of increases in gasoline and other motor fuels.
At the end of May, Brent recorded a decline, creating a decompression climate in the market, however, prices remain at high levels, as geopolitical risk remains active.
According to the latest available data from Global Petrol Prices, the global average gasoline price is $1.52 per liter, while the average price of diesel (diesel) is $1.58 per liter.
Let's see what the prices are in Europe and Cyprus, based on the European price bulletin (including taxes) and with a reference date of June 1st. In Cyprus, the average price of 95-octane petrol per litre is €1,610.51 and diesel per litre €1,801.63, while prices in Greece are €2,064.00 and €1,740.00 respectively.
In other countries
Malta (petrol €1,340.00, diesel €1,210.00),
Poland (petrol €1,418.45, diesel €1,466.90),
Bulgaria (petrol € 1,530.20, diesel € 1,705.80),
Spain (petrol €1,547.74, diesel €1,648.91),
Sweden (petrol € 1,614.51, diesel € 1,819.72),
Croatia (petrol € 1,700.00, diesel € 1,785.00),
Luxembourg (petrol € 1,704.00, diesel € 1,730.00),
Czech Republic (petrol € 1,715.50, diesel € 1,583.61),
Slovenia (petrol €1,719.19, diesel €1,762.82),
Austria (petrol € 1,735.00, diesel € 1,830.00),
Slovakia (petrol € 1,737.00, diesel € 1,648.00),
Lithuania (petrol €1,790.22, diesel €1,876.47),
Estonia (petrol € 1,812.00, diesel € 1,802.00),
Romania (petrol €1,835.74, diesel €1,804.22),
Belgium (petrol € 1,849.53, diesel € 2,078.89),
Latvia (petrol €1,878.60, diesel €1,823.83),
Portugal (petrol €1,937.00, diesel €1,872.00),
Italy (petrol €1,951.51, diesel €2,019.43),
Germany (petrol € 1,961.00, diesel € 1,860.00),
France (petrol €2,062.97, diesel €2,044.54),
Finland (petrol € 2,200.05, diesel € 2,296.14),
Netherlands (petrol €2,298.43, diesel €2,160.79),
Denmark (petrol €2,392.39, diesel €2,114.08).
The relationship with income
But how much does it cost to fill a car tank with 40 liters of gasoline, as a percentage of the average monthly income?
The Global Petrol Prices website clarifies, for example, that 10% in some countries means that 10% of the average monthly income per person is needed to fill a tank of petrol (data on GDP per capita from the World Bank is used, as a measure of income per person).
According to the website and the data it gives, in Cyprus it takes 2.5% of the average monthly income per person to fill a car tank with 40 liters of gasoline, in Greece 4.8%, in Portugal 3.9%, in Spain 2.5%, in Italy 2.7%, in the Czech Republic 3.1%, in Estonia 3.2%, in Poland 3.3%, in Lithuania 3.4%, in Slovakia 3.8%, in Croatia 4%, in Bulgaria 4.9%, in Romania 5%, in Austria 1.8%, in Sweden 1.7%, in Denmark and Belgium 1.9%, in the Netherlands 2%, in Malta 1.8%.
In the countries that produce
Let's see what happens in the countries that produce oil, how much it costs to fill up 40 liters with gasoline, as a percentage of monthly income.
In Qatar it is 0.4%, in Kuwait 0.5%, in Saudi Arabia and the United Arab Emirates 0.9%, USA 0.7%, Russia 3.1%, Canada 1.4%, China 5%, Brazil 6.2%.
There are also countries where citizens should think twice or three times about moving by car because filling a 40-liter tank compared to the average monthly income is very expensive.
According to the latest recently available data from Global Petrol Prices, in Moldova 11.5% of the average monthly salary is needed to fill a 40-liter tank with gasoline, in Bolivia 12%, in South Africa 12.3%, in Sri Lanka 15.4%, in Ukraine 15.6%, in the Philippines 18.4%, in Jordan 19.2%, in Morocco 19.5%, in India 20.1%, in Kenya 35.7%, Cameroon 40.65, Pakistan 49.6%, Nepal 47%, Zambia 56.4%, Tanzania 63.6%, Madagascar 107.1%, Mozambique 108.7%, Malawi 362.9%.
The cheapest countries
Libya remains the country with the cheapest gasoline in the world, as its price is $0.024 per liter. It is followed by Iran with $0.029 per liter, Venezuela at about $0.03 to $0.04 per liter. In both cases, governments continue to massively subsidize fuel, despite economic difficulties and international sanctions.
In the rest of the oil-producing countries in the region, prices also remain very low compared to European standards. In Kuwait gasoline costs $0.340 per liter, in Algeria $0.354, in Egypt $0.452, while in Qatar the price is $0.576 per liter. In Saudi Arabia, gasoline is sold for $0.621 per liter, which is almost a third of the prices found in many European countries.
Why Gasoline and Diesel Prices Differ
The website also mentions an important element about the price difference between gasoline and diesel (diesel). "According to our dataset from 161 countries, gasoline is more expensive than diesel in 84% of all countries. On average, diesel is 9.84% cheaper, but the difference varies greatly between countries, as well as within countries, over time.
Here we discuss various factors that contribute to the price difference. Both gasoline and diesel are produced from crude oil, and therefore the cost of crude oil is the main factor affecting gasoline and diesel prices. However, fuel prices reflect refining costs, taxes, and distribution and marketing costs. In addition, retail prices are influenced by market demand. These factors lead to a price difference between gasoline and diesel."
It is also reported that many countries tax diesel and gasoline differently. For example, in the U.S., the federal consumption tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel.
In contrast, most European countries tax diesel more lightly than gasoline. Since taxes are one of the main components of final consumer prices of fuel, tax policy largely determines the differences in gasoline and diesel prices between countries.
Regarding taxes, it is clarified that unlike gasoline, diesel is used to power not only cars, but also public transport vehicles, large distribution trucks, off-road vehicles, boats, machinery, generators, etc. During periods of economic growth, the demand for energy in the industrial sector increases significantly, and diesel prices rise more than gasoline prices. If the demand for diesel is higher, the price difference will widen.
Poland (petrol €1,418.45, diesel €1,466.90),
Bulgaria (petrol € 1,530.20, diesel € 1,705.80),
Spain (petrol €1,547.74, diesel €1,648.91),
Sweden (petrol € 1,614.51, diesel € 1,819.72),
Croatia (petrol € 1,700.00, diesel € 1,785.00),
Luxembourg (petrol € 1,704.00, diesel € 1,730.00),
Czech Republic (petrol € 1,715.50, diesel € 1,583.61),
Slovenia (petrol €1,719.19, diesel €1,762.82),
Austria (petrol € 1,735.00, diesel € 1,830.00),
Slovakia (petrol € 1,737.00, diesel € 1,648.00),
Lithuania (petrol €1,790.22, diesel €1,876.47),
Estonia (petrol € 1,812.00, diesel € 1,802.00),
Romania (petrol €1,835.74, diesel €1,804.22),
Belgium (petrol € 1,849.53, diesel € 2,078.89),
Latvia (petrol €1,878.60, diesel €1,823.83),
Portugal (petrol €1,937.00, diesel €1,872.00),
Italy (petrol €1,951.51, diesel €2,019.43),
Germany (petrol € 1,961.00, diesel € 1,860.00),
France (petrol €2,062.97, diesel €2,044.54),
Finland (petrol € 2,200.05, diesel € 2,296.14),
Netherlands (petrol €2,298.43, diesel €2,160.79),
Denmark (petrol €2,392.39, diesel €2,114.08).
The relationship with income
But how much does it cost to fill a car tank with 40 liters of gasoline, as a percentage of the average monthly income?
The Global Petrol Prices website clarifies, for example, that 10% in some countries means that 10% of the average monthly income per person is needed to fill a tank of petrol (data on GDP per capita from the World Bank is used, as a measure of income per person).
According to the website and the data it gives, in Cyprus it takes 2.5% of the average monthly income per person to fill a car tank with 40 liters of gasoline, in Greece 4.8%, in Portugal 3.9%, in Spain 2.5%, in Italy 2.7%, in the Czech Republic 3.1%, in Estonia 3.2%, in Poland 3.3%, in Lithuania 3.4%, in Slovakia 3.8%, in Croatia 4%, in Bulgaria 4.9%, in Romania 5%, in Austria 1.8%, in Sweden 1.7%, in Denmark and Belgium 1.9%, in the Netherlands 2%, in Malta 1.8%.
In the countries that produce
Let's see what happens in the countries that produce oil, how much it costs to fill up 40 liters with gasoline, as a percentage of monthly income.
In Qatar it is 0.4%, in Kuwait 0.5%, in Saudi Arabia and the United Arab Emirates 0.9%, USA 0.7%, Russia 3.1%, Canada 1.4%, China 5%, Brazil 6.2%.
There are also countries where citizens should think twice or three times about moving by car because filling a 40-liter tank compared to the average monthly income is very expensive.
According to the latest recently available data from Global Petrol Prices, in Moldova 11.5% of the average monthly salary is needed to fill a 40-liter tank with gasoline, in Bolivia 12%, in South Africa 12.3%, in Sri Lanka 15.4%, in Ukraine 15.6%, in the Philippines 18.4%, in Jordan 19.2%, in Morocco 19.5%, in India 20.1%, in Kenya 35.7%, Cameroon 40.65, Pakistan 49.6%, Nepal 47%, Zambia 56.4%, Tanzania 63.6%, Madagascar 107.1%, Mozambique 108.7%, Malawi 362.9%.
The cheapest countries
Libya remains the country with the cheapest gasoline in the world, as its price is $0.024 per liter. It is followed by Iran with $0.029 per liter, Venezuela at about $0.03 to $0.04 per liter. In both cases, governments continue to massively subsidize fuel, despite economic difficulties and international sanctions.
In the rest of the oil-producing countries in the region, prices also remain very low compared to European standards. In Kuwait gasoline costs $0.340 per liter, in Algeria $0.354, in Egypt $0.452, while in Qatar the price is $0.576 per liter. In Saudi Arabia, gasoline is sold for $0.621 per liter, which is almost a third of the prices found in many European countries.
Why Gasoline and Diesel Prices Differ
The website also mentions an important element about the price difference between gasoline and diesel (diesel). "According to our dataset from 161 countries, gasoline is more expensive than diesel in 84% of all countries. On average, diesel is 9.84% cheaper, but the difference varies greatly between countries, as well as within countries, over time.
Here we discuss various factors that contribute to the price difference. Both gasoline and diesel are produced from crude oil, and therefore the cost of crude oil is the main factor affecting gasoline and diesel prices. However, fuel prices reflect refining costs, taxes, and distribution and marketing costs. In addition, retail prices are influenced by market demand. These factors lead to a price difference between gasoline and diesel."
It is also reported that many countries tax diesel and gasoline differently. For example, in the U.S., the federal consumption tax on gasoline is 18.4 cents per gallon and 24.4 cents per gallon for diesel.
In contrast, most European countries tax diesel more lightly than gasoline. Since taxes are one of the main components of final consumer prices of fuel, tax policy largely determines the differences in gasoline and diesel prices between countries.
Regarding taxes, it is clarified that unlike gasoline, diesel is used to power not only cars, but also public transport vehicles, large distribution trucks, off-road vehicles, boats, machinery, generators, etc. During periods of economic growth, the demand for energy in the industrial sector increases significantly, and diesel prices rise more than gasoline prices. If the demand for diesel is higher, the price difference will widen.
