Why has American gasoline prices increased 120% since 2005, but German prices only 40%?

Question

Here's the article that points this out:

http://online.barrons.com/article/SB121324730241067505.html?mod=yahoobarrons&ru=yahoo

Is is because Germans use Euros, and we use US dollars?

Answer 1

Part of it is the weakness of the dollar

Another part is that they have higher taxes.  So even if gas increases by the same amount in both countries, the percentage increase will be higher here, because we started lower.

Answer 2

yes, since oil is traded in dollars it affect our prices more than the Europeans.  since the euro is stronger than the dollar a jump in oil prices will affect euro less than it would the dollar.

also, they pay a higher price for oil to begin with.  so a jump in the cost will have a smaller percentage affect on them than it would us.  for example if they pay $9/gal and we pay $2/gal, a  jump of $0.25 will have a 2.8% increase for them and a 12.5% increase for us.

there is also something to be said for why oil prices have jumped so high, but that's a whole-nother argument.

Answer 3

US dollar has lost value due to lowered interest rates and higher national debt under GW Bush and the GOP controlled congress of 1996-2006.

Answer 4

The dollar has lost over 60% in value and the euro has not .

Answer 5

It is simple supply and demand economics. First the Germans have stopped relying on petroleum products and focused much of their attention on bio-fuels long before the United States. Also, many of the European cars are not run off of gas but rather diesel. Therefore the demand for the product is lower.

Secondly, you have to take into account three things: the growth and demand of China and its partnership with Venezula; secondly, the weakness of the American dollar becuase you are an import country in the petroleum industry and therfore are paying more, and finally, the war in the Middle East. This has caused the OPEC nations to up the price of oil by cutting back production.