Fuel prices: how does Australia compare to the rest of the world?

How is it possible Australians are forking out more than $2.50 per litre for unleaded petrol when other nations aren’t even paying half that?

While world fuel trade is a complex economic ecosystem, there are some fundamental factors that determine the final price a motorist will pay at the pump.

Oil producing nations, such as Venezuela and those in the Middle East, naturally pay less because they are primary producers.

As a general rule, more affluent nations tend to pay higher prices for a litre of petrol than poorer countries, while taxes or government subsidies can play a significant role in raising or lowering prices.

The Australian Government presently charges an excise (fuel tax) on producers and importers, which is passed onto the consumer and adds around 50 cents to each litre of petrol and diesel.

But is Australia paying through the nose, globally speaking?

As the graphic below shows, we’re somewhere towards the centre. We pay a lot more for fuel than Middle Eastern countries and the likes of Japan and the US, but compared to many European nations we’re not punished at the pump.