U.S. Gasoline is Still Dirt-Cheap
American gasoline is also dirt-cheap compared with gas in other countries. British motorists are currently paying about $8.38 per gallon for gasoline. In Norway, a major oil exporter, drivers are paying $8.73.
In 2007, out of the 32 industrialized countries surveyed by the International Energy Agency (see p. 42 of the report) only one (Mexico) had cheaper gasoline than the United States
(MP: And it't not just gasoline, consumer prices for electricity and natural gas in the U.S. are among the lowest of the 32 countries, about half the prices in the U.K. for example, see p. 43).
Last year, drivers in Turkey were paying three times as much for their gasoline as Americans were. The IEA data also show that in India—where the per capita GDP is about $2,700 (about 6 percent of the per capita GDP in the United States)—drivers have been paying more for their diesel fuel and gasoline than their American counterparts.
Gasoline is also cheap compared with other essential fuels. A Starbucks venti latte costs the equivalent of $23 per gallon while Budweiser beer runs $11 per gallon.
The simple truth is that Americans are going to have to get used to more expensive gasoline. And while they may continue grumbling at the pump, they need to accept the fact that even at $3.50 or $4 per gallon, the fuel they are buying is still a bargain.
From "Gasoline is Cheap" in Slate.com.