Current high gas prices are a global concern. Today, going to a gas station to fill up the tank is a nightmare in America. In China, however, gas prices are much lower than ours. Why is that?
Price of Gas
In China, one gallon of gas costs about $2.60; while in the United States it averages $4.00 a gallon (Lee)
ConsumptionIn the past, most Chinese citizens did not own a car; they traveled on bicycles, scooters, buses, or just walked. Gas companies went out of business because of low cost and low consumer rates. Today, more Chinese industries are needing oil and oil products. China consumes about 9.3 percent of the world’s total daily gas supply; while the United States consumes 24 percent; that is about 20.7 million barrels! (Sagami)
China's AdvantageA long-term goal in China's price reform in the natural-gas sector is to have a complete market-oriented price mechanism. NDRC sources said a draft for resource-pricing reform has been passed." (China braces for rising gas prices, Asia Times)
Overall, the cost of oil is now one of the biggest dilemmas around the world, and the growing consumption by China is a very important factor.