BOSNIA SELLS THE MOST EXPENSIVE GASOLINE IN THE WORLD

SARAJEVO, Bosnia (May 4,2008) - Out of 155 countries surveyed, the most expensive place in the world to fill up your tank is Bosnia at $10.86 a gallon, according to a recent study from AIRINC, an international research firm that tracks cost of living data.A gallon is a measure of volume. It is in current use in the United States and still has limited use in many other English-speaking countries.U.S. liquid gallon is legally defined as 231 cubic inches, and is equal to 3,785411784 litres (exactly) or about 0.13368 cubic feet.

Most expensive places in the world to buy gas:

1. Bosnia $10.86
2. Eritrea $9.58
3. Norway $8.73
4. United Kingdom $8.38
5. Netherlands $8.37
6. Monaco $8.31
7. Iceland $8.28
8. Belgium $8.22
9. France $8.07
10. Germany $7.86
111. United States $3.45

As of late March, U.S. gas prices averaged $3.45 a gallon. That compares to over $8 a gallon across much of Europe.

Price comparisons are not all created equal. Comparing gas prices across nations is always difficult. For starters, the AIRINC numbers don't take into account different salaries in different countries, or the different exchange rates. The dollar has lost considerable ground to the euro recently. Because oil is priced in dollars, rising oil prices aren't as hard on people paying with currencies which are stronger than the dollar, as they can essentially buy more oil with their money as the dollar falls in value.

And then there's the varying distances people drive, the public transportation options available, and the different services people get in exchange for high gas prices. For example, Europe's stronger social safety net, including cheaper health care and higher education, is paid for partly through gas taxes.

Gas price: It's all about government policy. Gasoline costs roughly the same to make no matter where in the world it's produced, according to John Felmy, chief economist for the American Petroleum Institute. The difference in retail costs, he said, is that some governments subsidize gas while others tax it heavily.

In many oil producing nations gas is absurdly cheap. In Venezuela it's 12 cents a gallon. In Saudi Arabia it's 45.

The governments there forego the money from selling that oil on the open market - instead using the money to make their people happy and encourage their nations' development.

Subsidies, many analysts say, are encouraging rampant demand in these countries, pushing up the price of oil worldwide.
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