If oil is sold on the open market to the highest bidder, why is gasoline so much

[bertman]

cheaper in the U.S. than it is in Europe? Do they tax it at a higher rate? Or is it some other factor?

Edited to correct typo.

[The Straight Story]

1. higher taxes (nt)

[and-justice-for-all]

2. It because of price speculation....

the horders of those resources want to make money on 'possible future losses' due to trouble is an oil producing country. As if those corporations really need to worry about profits, those oil corporations are nothing more than vampyres.

[LAGC]

3. I've heard its because the global reserve currency is the U.S. dollar.

If the international community ever moves away from pricing oil using the USD as the reserve currency, we'd see gasoline prices sky-rocket to European levels.

[AlabamaLibrul]

4. One reason is WTI vs Brent

Generally speaking American oil is WTI, and European oil is Brent. Brent is also considered higher quality oil.

[A HERETIC I AM]

5. Wrong.

"Generally speaking American oil is WTI, and European oil is Brent. Brent is also considered higher quality oil."

WTI stands for "West Texas Intermediate" so therefore not ALL American oil is WTI. Oil is produced in almost every state in the union to one degree or another. WTI is used as a benchmark for pricing because it is of higher quality, not lower quality than Brent crude. It is "Light" or low density and "Sweet" or low sulfur which makes it desirable for processing into gasoline.

"Brent" crude is basically oil produced in the North Sea, off the coast of England and Scotland. The word "Brent" refers to a species of Goose, because Shell used to name all their exploratory fields after birds.

http://en.wikipedia.org/wiki/West_Texas_Intermediate
http://en.wikipedia.org/wiki/Brent_crude
http://en.wikipedia.org/wiki/Sweet_crude_oil
http://en.wikipedia.org/wiki/Sour_crude_oil

[Javaman]

6. Gas in Europes has a big tax added to it to support various social infrastructures...

Rail travel for one, and a host of other programs.

[pampango]

7. From wiki: It's high fuel taxes.

Gasoline usage and pricing in Europe

Most European countries have high fuel taxes. The prices have traditionally been three to four times the price in the United States, with prices during 2000-2005 of €1,50/litre (about US$2.14/l or $8.10/gal) while the US had prices around $1.50/gal or $0.40/l. After a large increase until the summer of 2008, the end of 2008 experienced a strong decline linked with a sharp economic downturn, with the average price of gas in the U.S. at $1.87/gal (December 2, 2008). However, the price of gas in Europe is still more than triple the US price at €1.45/litre.

http://en.wikipedia.org/wiki/Gasoline_and_diesel_usage_and_pricing#Gasoline_usage_and_pricing_in_Europe

[Angleae]

8. UK taxes appx $3.50 / gal + 20% VAT

US taxes 18.4 cents/gal (fed) + 21.41 cents/gal (state avg)

[Thunderstruck]

9. Yes, it's taxes. They tax the shit out of gas over there.

[taterguy]

10. They tax it so that it comes close to paying what governments spend building and maintaining roads

Why is that "taxing the shit out of it"

[Thunderstruck]

12. And that's fine with me...

I wasn't being negative about it. And though I am conflicted about how it would affect those less fortunate among us, I think we should be taxing the shit out of it. After all, there's only so much left anyways and we're going to have to face that reality soon, and taxing it would, indeed, help maintain infrastructure as well as reduce demand, helping to free us from our dependence on foreign fuel.

Talk about being between a rock and a hard place. You tax gas like it should be and you hurt the poor. You don't tax the shit out of it and you end up with crumbling infrastructure and supply shortages due to future production declines.

[gracchorumspes]

11. I think they tax the heck out of it.

[bertman]

13. Thanks for all the answers and opinions. I would like to see us tax it more

as well, but FIRST we need to come up with major mass transit upgrades so the poor are not screwed to the wall. Right now, a major tax increase on gas would kill the economy and the transportation plans of a huge percentage of the population.

Any other thoughts on this?