The Mudcat Café TM
Thread #68183   Message #1148075
Posted By: Shanghaiceltic
28-Mar-04 - 04:54 AM
Thread Name: BS: Why is gasoline so expensive?
Subject: RE: BS: Why is gasoline so expensive?
Just to add another perspective; gas in China is RMB 3.2 a litre that works out at about RMB 14.5 per imperial gallon. On todays exchange rates that is $1.75 per gallon. Therefore comparable with the US, but cheaper than the UK.

This then needs to be compared at the basic wages in China. In a city like Shanghai or Beijing an average good local wage is about $600 a month. In the country side it is much much lower.

Therefore the real cost is much higher, when taken as a percentage of earnings.

Chinese cars are fairly cheap but cars made by joint ventures such as Volkwagen, GM and Ford are much more expensive than an equivalent model made outside of China.

In Shanghai the cost of a car number plate is now RMB43,000 or $5200.
Some other cities are cheaper but unless you have a residents permit you cannot register in another city.

So a good communist country like China is no different from any other country. Cars are considered a luxury and are therefore taxed on the purchase price, the licencing and the gas that goes in them.

All motorways are toll roads and the tolls are not cheap either. A 2.5 hour return trip to a city called Hangzhou about 200 Km from Shanghai will cost about $22 in tolls alone.

So on balance the US seems to be getting a pretty good deal.