The gov is a little harsh in Iran and I'd have to run around in a robe...but I could drive me car for peanuts.
By Pallavi Rao, Visual Capitalist
Feb 12, 2025
Factors that Affect Gas Prices Around the World
The price at the pump is determined by multiple factors.
First is the cost of crude oil, which varies based on type; lighter, sweeter crude is generally more expensive and produces more gasoline per barrel.
Next are refining costs, which depend on the complexity and technology of the refinery.
Then there’s the cost of transportation and distribution, followed by federal, state, and local taxes. Government subsidies may also affect the final price.
This last part particularly can be seen by comparing prices in Iran, Russia, and Norway. In the first two countries, gas is heavily subsidized to boost domestic demand.
On the other hand Norway places a steep tax to discourage consumption and promote the use of alternative fuels. As a result, EV adoption in Norway is close to 90%.
Finally, local prices have been converted to U.S. dollars for this comparison, and current exchange rates will have an impact on the final figure. It’s also worth remembering that in many countries the price in U.S. dollars may be low but might be very expensive compared to median incomes.
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