HappySqurriel on 11 September 2009
Variations in the price of oil/gasoline around the world are almost entirely determined by variations in how oil is taxed/subsidized in different regions. In many countries there is a belief which I believe is somewhat justified that inexpensive readily available energy is one of the pillars of rapid economic growth, and therefore the government artificially lowers the price of energy to make it more affordable to the masses.
The unfortunate thing is that many of these countries that try to encourage growth through cheap energy tend to ignore the other factors of economic growth like contract law, property ownership and encouraging entrepreneurship.
