A comparison of gasoline prices in Germany and the U.S. and their development from 1950 to the present.
Prices for gasoline and diesel are skyrocketing in Germany
The gasoline price trend in Germany is not too far from an all-time high. The price of gasoline in Germany is rising and rising. Due to the gasoline price development, Germany is currently at the top internationally. In other European countries, however, gasoline in the Netherlands and Denmark is even more expensive than in Germany. A look across the Atlantic Ocean shows that gasoline and diesel do not always have to be expensive. The direct comparison of gasoline prices in Germany and the USA shows that it is also possible to be cheap. In the USA, for example, things are different. The price of gasoline and diesel in the USA is miles away from the prices in Germany. The gasoline price comparison Germany USA provides information about how this development arises.
How much does a liter of regular gasoline cost in Germany?
A liter of regular gasoline will cost an average of $2.02 per liter or $7.65 per gallon in Germany in February 2022.
According to GlobalPetrolPrices, as of February 15, 2022, Germany was ranked 14th(~$2.02/l) and the U.S. was 69th highest in the world for gasoline prices, averaging $1.03/l. HongKong tops the list at $2.71/l.
Chart and Table: Statistics of gasoline prices converted to Eur/gal in Germany from 1950 to 2022
Origin of the gasoline price in Germany and the USA
The gasoline price trend in Germany in recent years is clear. The price keeps climbing upwards. In Germany, the price of gasoline and diesel is always subject to strong fluctuations. It fluctuates from day to day, from hour to hour and from gas station to gas station.
Consumption is to be steered in a certain direction. Different energy taxes are levied on diesel and gasoline. Until 2006, the energy tax was also known as the mineral oil tax. The fact is that taxes account for the largest share of the price of gasoline in Germany. The higher the tax, the more serious the gasoline price trend in Germany.
The energy tax rate for gasoline is 65.45 cents per liter. For diesel, the energy tax is currently 47.04 cents per liter(2021). However, the energy tax is not the only tax levied on all energy sources. Sales tax is also due. It is added to the price of the goods and the energy tax. This means that in the case of gasoline, around 64 percent of the price is paid to the state as taxes.
This has serious consequences for the price of gasoline in Germany. The remaining 36 percent of the price of gasoline in Germany is used to pay off the costs of the product, and usually there is only left 1-2 cents each liter tho the gas stations. These costs are also incurred in the USA, as the gasoline price comparison Germany USA illustrates.
These costs are incurred by the crude oil source, transport to Germany, further processing up to the gasoline pump, and the CO2 tax. The petroleum companies also try to make as high a profit as possible. On the one hand, taxes influence fuel prices and, on the other, market forces. Global commodity trading forms the basis for the development of fuel prices. The political situation, the economy or the time of year are decisive factors that affect global commodity trading. The current dollar exchange rate will also have a significant impact.
The reason for this is that oil is traded almost exclusively in dollars, the U.S. currency. If the dollar exchange rate rises in relation to the euro, it becomes more expensive at the pump. This factor does not apply to the gasoline price comparison Germany USA in the USA. In addition, in Germany, gas station operators are in competition. Shell, Aral, Jet or independent gas stations also have an influence on the price of gasoline.
Thus, consumers have an influence on the price structure. They often fill up at the gas station where the gas is cheapest. A few years ago, consumers could count on the price of diesel and gasoline being highest at night. During the day, the price has steadily declined. Now, numerous price spikes of varying sizes characterize the course of the day. Those who fill up in the morning fill up the most expensive.
At night, fuel prices remain mostly constant, but from 6 a.m. onward, the increase occurs. At just after 7 a.m., prices peak. As a rule, the price of gasoline in Germany does not get any higher for the rest of the day. Further price peaks can be seen during the course of the day.
The gasoline price comparison Germany USA shows clear differences. Europeans perceive the gasoline prices in the USA as dreamlike. The gasoline price in Germany is miles away from the gasoline price in the USA. This is shown by the direct gasoline price comparison Germany USA. When looking at the gasoline prices in the USA, it is noticeable that gasoline is most expensive in California or directly on the West Coast.
The reason for this is, among other things, taxes that are added to the price of gasoline. In the southwest of the USA, Utah, Nevada and Arizona, gasoline prices are significantly lower. The main reason why the U.S. comes out much better in the gasoline price comparison Germany U.S.A. is that significantly fewer taxes are levied in the U.S.. On a national average, a gallon of regular gasoline currently costs $3.80. A gallon is 3.785 liters.
This means that one liter of gasoline costs the equivalent of 0.76 euros. But it is not just the price of gasoline in Germany that is facing its record high. Many citizens in the U.S. are complaining about the high price of gasoline. Although there are fewer taxes on gasoline in the U.S. than in Germany, the political situation and the economy also have an influence on the price of gasoline in the U.S.. This becomes clear once again in the gasoline price comparison Germany USA.
Gasoline consumption development per capita in Germany and the USA
When comparing gasoline prices in Germany and the USA, per capita consumption is also interesting.
The fact that the USA has the highest per capita gasoline consumption in the world is no longer a secret. In 2016, the average person here consumed 4.39 liters per day. In Germany, the figure for the same period was around 0.84 liters per person per day(GlobalPetrolPrices).
One reason for this may be the high price of gasoline in Germany. However, the thirst for oil seems unquenchable not only in the USA but also in Germany. The Germans are currently optimizing their energy consumption. Many Germans have now switched to cars that run on natural gas or electricity.
This is having an impact on the price of gasoline in Germany on the one hand and on per capita consumption on the other. In Germany, a total of 51.9 million tons of fuel were consumed in 2020. In the U.S., 17.2 million barrels of petrol were consumed in 2020. In recent years, fuel consumption in Germany has fallen slightly due to the gasoline price trend in Germany.
Gasoline price trends in Germany show that in 1950, a liter of gasoline cost 28.6 cents, and a liter of diesel fuel cost 17.2 cents. Prices have risen steadily over the past 70 years. Gasoline price development in Germany saw the first significant increase in 1973 as a result of the oil crisis. In 1981, further price increases followed the second oil crisis. The eco-tax, which came into force in 1999, also had a negative impact on gasoline prices in Germany.
Gasoline prices in Germany are soaring to a record high. The last time gasoline prices in Germany were this high was in 2013. A comparison of gasoline prices in Germany and the USA shows that gasoline prices in the USA are also rising. However, the price of gasoline in Germany is much higher.
One reason for the gasoline price development in Germany is the high tax burden. Around 64 percent of the price of gasoline in Germany is accounted for by taxes. Since significantly fewer taxes are levied in the U.S., the U.S. has fared much better in the gasoline price comparison Germany U.S.. Germans now no longer rely exclusively on fossil fuels.
In some cases, they now rely on natural gas or electricity, which in turn has an impact on the price of gasoline in Germany.