In high-wage nations, expensive gas prices are by and large affordable for the population. For example, Norway's gasoline price of $6.53 a gallon is the third highest in the world, but its average citizen earns nearly $200 a day.
This combination means that Norway's high prices are the 10th most affordable in the world. On the other end of the spectrum, Nigeria, Africa's leading oil producer, boasts the 7th cheapest gas prices in the world at $1.94 a gallon. But when coupled with an $8 average daily wage, Nigeria's gas becomes the 4th least affordable in the world.
The U.S. consumes more gasoline than any other country, and the average household spends about $2,000 a year on gas. But in the last few years, low gas prices have given millions of drivers extra money to spend or save.
In the rest of the world, gas prices tend to be higher. But the nominal price of gasoline doesn't provide a complete picture of how expensive the fuel really is in a given country. In order to determine the affordability of gasoline (or any other product), you have to compare the price to income. A recent Bloomberg report compared gas prices in different counties to the average national paycheck to find where gas really is the most, and least, affordable.
Here are the 10 most and least affordable countries for gasoline when measured against average national incomes.
Most Affordable:
1. Venezuela
Price per gallon: $0.02
Average daily wage: $16.14
Daily wages spent on one gallon of gas: 0.95 percent
2. Kuwait
Price per gallon: $0.88
Average daily wage: $68.69
Daily wages spent on one gallon of gas: 1.27 percent
3. United States
Price per gallon: $2.57
Average daily wage: $156.34
Daily wages spent on one gallon of gas: 1.64 percent
4. Luxembourg
Price per gallon: $4.69
Average daily wage: $285.13
Daily wages spent on one gallon of gas: 1.66 percent
5. Saudi Arabia
Price per gallon: $0.91
Average daily wage: $52.77
Daily wages spent on one gallon of gas: 1.72 percent
6. United Arab Emirates
Price per gallon: $1.80
Average daily wage: $90.13
Daily wages spent on one gallon of gas: 2.00 percent
7. Switzerland
Price per gallon: $5.58
Average daily wage: $213.60
Daily wages spent on one gallon of gas: 2.58 percent
8. Australia
Price per gallon: $3.57
Average daily wage: $134.27
Daily wages spent on one gallon of gas: 2.58 percent
9. Canada
Price per gallon: $3.45
Average daily wage: $110.41
Daily wages spent on one gallon of gas: 2.96 percent
10. Norway
Price per gallon: $6.53
Average daily wage: $190.47
Least Affordable:
1. India
Price per gallon: $3.75
Average daily wage: $4.77
Daily wages spent on one gallon of gas: 80.20 percent
2. Pakistan
Price per gallon: $2.32
Average daily wage: $3.97
Daily wages spent on one gallon of gas: 56.71 percent
3. Philippines
Price per gallon: $3.17
Average daily wage: $8.14
Daily wages spent on one gallon of gas: 39.69 percent
4. Nigeria
Price per gallon: $1.94
Average daily wage: $8.00
Daily wages spent on one gallon of gas: 34.85 percent
5. Egypt
Price per gallon: $2.66
Average daily wage: $10.25
Daily wages spent on one gallon of gas: 28.40 percent
6. South Africa
Price per gallon: $3.19
Average daily wage: $13.03
Daily wages spent on one gallon of gas: 23.64 percent
7. Indonesia
Price per gallon: $2.23
Average daily wage: $9.89
Daily wages spent on one gallon of gas: 22.36 percent
8. Thailand
Price per gallon: $3.44
Average daily wage: $16.23
Daily wages spent on one gallon of gas: 21.84 percent
9. Turkey
Price per gallon: $5.77
Average daily wage: $26.13
Daily wages spent on one gallon of gas: 21.22 percent
10. Bulgaria
Price per gallon: $4.05
Average daily wage: $18.93
Daily wages spent on one gallon of gas: 21.19 percent
Author: Emily Shah
