Top 10 countries and territories with the cheapest and most expensive gasoline prices
According to general principles, gasoline prices in richer countries are often higher while in poorer countries and oil producing and exporting countries have significantly lower prices. A notable exception is the US, an advanced economy with low gasoline prices.
The difference in prices between countries is due to different taxes and subsidies for gasoline. All countries have access to the same gasoline prices in the international market but then decide to apply different types of taxes. Therefore, retail prices of gasoline and oil are different.
According to the latest update on February 21, 2022 on Global Petrol Prices, the top 10 countries with the cheapest gasoline prices in the world at the moment are: Venezuela (0.025 USD - 680 VND/liter); Iran (11,140 VND); Syria (7,300 VND); Angola (7,400 VND); Algeria (7,500 VND); Kuwait (7,900 USD); Nigeria (9,100 VND); Turkmenistan (9,800 VND); Kazakhstan (10,950 VND); Malaysia (11,100 VND).
Top 10 countries and territories with the most expensive gasoline prices in the world: Hong Kong (China) (2,729 USD - 62,400 VND/liter); Netherlands (53,000 VND); Norway (52,000 VND); Iceland (50,200 VND); Finland (50,100 VND); Denmark (49,200 VND); Israel (40,100 VND); Greece (48,600 USD); Italy (47,700 VND); Central African Republic (47,500 VND).
In Vietnam, on the afternoon of February 21, domestic retail prices of gasoline and oil were adjusted to increase sharply. Specifically, E5 gasoline will increase to VND 25,532/liter, A95 gasoline will increase to VND 26,287/liter. With this price increase, RON 95 gasoline price surpassed the "peak" in July 2014 (26,140 VND/liter), this is the highest level since 2005.
How does rising oil prices affect countries?
Rising gasoline prices are causing inflation and headaches for governments and central banks around the world, especially in countries where elections are about to take place.
While the US midterm election in November is a typical example of how energy prices affect the political sphere, upcoming elections in Asia could also be affected. India has held statewide elections, South Korea will elect a president in early March. There will also be a general election in Australia and a run for the House of Councilors in the next few months.
The continuous increase in oil prices to 3-digit levels has prompted political action from those in power. India cut retail tariffs on gasoline and diesel in November and has since seen an unofficial freeze on prices. South Korea will implement a temporary 20% reduction in fuel tariffs from October to April, which could be extended, while Japan is subsidizing refineries to produce engine fuel.
According to Sonal Varma, chief economist for India and Asia, Japan at Nomura Holdings Inc, governments in economies where wages are falling behind inflation will be most vulnerable to the political reaction caused by gasoline.
If a country has low-income growth and high inflation, that country will go through a double war, and it could have both economic and political consequences, Bloomberg quoted Varma as saying.
Retail gasoline prices in Australia have increased by 80% since the beginning of May 2020, while in Japan, the figure increased by 37%. In India, there are strong expectations that state-owned major fuel retailers will increase prices after the election ends next month.
Indian voters will vote in elections lasting until early March in five states, most notably Uttar Pradesh, the largest state with more than 200 million people. Inflation broke the central bank's 6% resistance limit in January. Bloomberg Economics data shows that rural wages have not kept up, increasing by only 3.31% in December compared to a year before.
South Korea elected a new president on March 9. Incumbent President Moon Jae-in is not allowed to run for another term and polls are showing a tight race between his party and the opposition candidates. Average wages rose 4% last year, while inflation rose 3.6% year-on-year in January, so price increases may not play a big role in elections like in other places.
Australian Prime Minister Scott Morrison must call for a general election before the end of May and polls show he could face defeat. Consumer sentiment is affected as households struggle with rising gasoline prices, while the Reserve Bank of Australia forecasts core inflation to rise above 3%. Average salary increased by 2.2% in the third quarter of 2021 compared to a year before.
In Japan, more than half of the Senate seats will be elected in a July vote, which could affect Prime Minister Fumio Kishida's chances of continuing in office. Household inflation expectations are at their highest level since 2008, while average monthly cash income actually fell slightly in December compared to a year earlier. Mr. Kishida said the government is reviewing many policies to reduce the impact of high oil prices on households.
"High fuel prices have been a persistent problem in the global inflation environment since 2021," said Vandana Hari, founder of Vanda Insights, a Singapore oil market analyst.
