World oil price trend
Vietnam increases gasoline prices for all gasoline products from 4:00 p.m. on October 26. In the latest price increase, each liter of E5 RON 92 gasoline increased by 1,430 VND; RON 95 gasoline increased by 1,460 VND. After adjustment, E5 RON 92 gasoline is at VND23,110 per liter, while RON 95 gasoline is at VND24,330 per liter - the highest level in 7 years (since September 2014). Oil products are also expensive by VND 120-1,170 per liter, kg depending on the type.
Since the end of September, oil prices are approaching all-time highs in many countries as high demand and a shortage of supply have caused global oil prices to be close to a 3-year high. In 2001, the average global gasoline price was about 0.60 USD/liter.
The sharp increase in gasoline prices caused a major disruption across China, the US, the UK and Europe. Gasoline and diesel prices also increased dramatically in some countries, including India and South Africa.
According to hindustan Times, which country has the most expensive and cheapest gasoline prices is related to countries that are petroleum producers for the world, countries that completely import petroleum or import a large part of petroleum.
If domestically produced, gasoline prices will clearly be lower than those of imported countries. However, there are many other factors affecting fuel prices worldwide, so gasoline prices not only vary by country but also by region.
The most expensive gasoline price in the world, the cheapest in the world
According to globalpetrolprices.com as of September 30, 2021, Hong Kong (China) is the place with the most expensive gasoline price in the world with a price of 2.56 USD per liter of gasoline. If you visit Hong Kong and choose to rent a self-driving car, you need to be willing to pay a large sum of money for fuel.
Followed by Hong Kong is the Netherlands, with gasoline prices at $2.18/liter. The third place belongs to the Central African Republic, where a liter of gasoline will cost a driver 2.14 USD.
Other countries with quite expensive gasoline prices are Norway, Israel, Denmark, Monaco, Greece, Finland and Iceland.
Meanwhile, one of the world's record low gasoline prices is Venezuela - where 1 liter of gasoline costs 0.02 USD, cheaper than buying a pack ofem. Iran has a price of 0.06 USD per liter of gasoline and a price of 0.23 USD for gasoline in Syria.
Some other places on the global map with truly affordable gasoline prices are Angola, Algeria, Kuwait, Nigeria, Turkmenistan, Kazakhstan and Ethiopia. All of the countries listed below $0.50 have gasoline prices.
How does crude oil become gasoline?
Gasoline, diesel and many other fuels are produced from crude oil - a fossil fuel likened to "black gold" pumped up from the ground. Many household appliances, including plastic, detergents, and clothing, also come from this non-recyclable resource.
High crude oil prices affect a number of industries, from transportation to production. Raw oil is classified according to thickness (heavy, medium and light) and sulfur content (sweet - low sulfur, sour - high sulfur). Lightly sweet crude oil is the highest level, most searched.
Brent and WTI (West Texas Intermediate) crude oil is the global standard for lightly sweet crude oil. Brent crude oil is drilled in the North Sea between the UK and Norway while WTI is sourced from US oil fields.
Oil exploited from oil fields will be transported to different refineries, put into distillate kilns to form different types of fuel and products. Lighter products, including liquefied petroleum gas, can be extracted at low temperatures while heaviest products, including sugar plastic, are extracted at much higher temperatures.
How have gasoline prices changed over the past 20 years (2001-2021)
Gasoline prices at points of sale depend on many different factors, including crude oil prices, transportation costs, taxes and distribution costs, according to Al Jazeera.
In 2001, Brent crude oil was traded for about 25 USD/barrel. A box is equivalent to about 159 liters. At its peak in 2008, Brent was priced at around 140 USD/barrel and then decreased to 45 USD when the global financial crisis affected energy consumption demand.
In April 2020, oil prices fell sharply to a record low again when the COVID-19 pandemic broke out globally, causing many countries to lock down and demand to fall to very low levels.
In September 2021, increased demand combined with a shortage of supply pushed crude oil prices to a nearly 3-year high of approximately $80/barrel. Analysts at Goldman Sachs predict Brent oil prices will reach $90/barrel by the end of this year.
Countries with the most oil
The world's oil producing center is OPEC - the Organization of the Petroleum Exporting Countries. Founded in Baghdad, Iraq in 1960, the multinational organization consists of 13 countries that own about 80% of the world's identified crude oil reserves.
According to the US Energy Information Administration, OPEC member countries produce about 40% of the world's crude oil and account for about 60% of total international petroleum trade.
OPEC believes oil demand will return to pre-pandemic levels in 2022 and expects to increase production by 1.7 million barrels per day in 2023.
Venezuela has the world's largest oil reserves with 303,806 million barrels, followed by Saudi Arabia with 258,600 million and Iran with 208,600 million according to OPEC's 2020 annual statistics. The three countries account for nearly half of the world's 1.55 trillion barrels of oil reserves. Non- OPEC countries with the largest reserves include Russia (80,000 million barrels) and the US (52,637 million barrels).
According to OPEC Secretary General Mohammad Barkindo, oil will hold the number one position in the global energy mix, providing 28% of global energy demand by 2045.
