40% of oil in the USA is used to produce gasoline, but oil imports account for a shocking 55% of total consumption. Considering the giant-scale oil refineries in the father of all nations, it’s a puzzling fact why they rely so heavily on Saudi Arabia, Mexico, Venezuela and Canada for their oil supply. This further complicates our question on what the price of gas is outside the USA.

At $4 a gallon, gas in the USA is cheaper compared with other parts of the world. The Danish consider oil in terms with platinum, not for its rarity, but exclusively for its sky-rocketing price. Although oil refineries are located in Northern Denmark, Oslo records the highest worldwide gas prices of a stunning $9.85 a gallon. What the common man misses out here is the Purchasing Power Parity of Denmark, which is historically much higher than other economies, justifying their soaring living costs.

The East African Nation of Eritrea faces the blunder of a $9.46/ gallon of oil against neighbouring country Kenya, with a relatively sober $5.94/gallon. Both import abundantly from Nigeria, yet Kenya enjoys an evident cost advantage over Eritrea in acquiring the oil.

But there is the other side of the coin which distorts the entire equation of what the price of gas is outside the USA. The world’s lowest-priced gasoline can be found in oil-rich Venezuela, where, at 12 cents a gallon, you can fill a Hummer for less than the price of a Big Mac.

So why the big price differences around the world? Experts say retail gas prices are influenced by a variety of factors, including the cost of refining, distribution and marketing. But the biggest single variable is government policy: Some countries tax gasoline heavily; others subsidize it to make it cheap.

Many countries choose the former. In the U.S., state and local taxes account for about 19% of the price of the average gallon of gas. Whereas, In England, where drivers are paying nearly $9 a gallon, taxes account for 81.5% of the pump price.

European countries have long relied on hefty fuel levies to fund road work and social programs and to encourage conservation. The same is true for some Asian nations including South Korea ($7.33 a gallon) and Japan ($6.30 a gallon) — both of which import all of their crude.

The philosophy is different in some oil-rich countries that subsidize fuel as a way to share the wealth and keep citizens happy. Drivers pay less than 50 cents a gallon when they fill up in Saudi Arabia and Iran. Gas is cheaper than milk in Venezuela, which spends an estimated $11 billion subsidizing gasoline.

The Indian contingency tried to keep pace with global crude prices, but failed to do so. Lately, they have been funding the oil companies in return of low prices to consumers. This is a form of subsidy, which is very temporary, and cannot be sustained with escalating prices. Further crude import in India is strangely listed in the Singapore Stock Exchange, where Singapore gasoline prices determine the import rate for crude into India. Yet India maintains a $4.98/ barrel rate – which further adds fuel to the resultant of what the price of gas outside the USA is.