Though American drivers are feeling pinched, consumers in some parts of the world would consider U.S. gasoline cheap. Thanks to heavy taxes, European drivers pay much more. In Norway, prices recently toped $7 a gallon. Taxes can make up more than two-thirds of the pump price in some European countries.
But drivers in some Asian and Middle Eastern countries get off easier at the pump -- thanks to heavy government subsidies that keep gasoline below world market prices. In Iraq, where you'll find the world's cheapest gasoline, you can top off for as little as 5 cents a gallon, according to a recent report by the International Monetary Fund. Last year, the Iraqi government spent some $3 billion on gasoline subsidies, an expenditure the IMF says threatens the country's fragile Iraqi economy.
Other countries that subsidize gasoline have gradually begun lifting prices. China raised prices by 4.5 percent in June to $1.63 a gallon. India also raised retail gasoline and diesel prices in June, the first increase since last November.
But drivers in some Asian and Middle Eastern countries get off easier at the pump -- thanks to heavy government subsidies that keep gasoline below world market prices. In Iraq, where you'll find the world's cheapest gasoline, you can top off for as little as 5 cents a gallon, according to a recent report by the International Monetary Fund. Last year, the Iraqi government spent some $3 billion on gasoline subsidies, an expenditure the IMF says threatens the country's fragile Iraqi economy.
Other countries that subsidize gasoline have gradually begun lifting prices. China raised prices by 4.5 percent in June to $1.63 a gallon. India also raised retail gasoline and diesel prices in June, the first increase since last November.