This nation is positioned as the most expensive in Latin America, only below Mexico and Peru. Photo: composition Jazmin Ceras/LR/ ADN Radio
The cost of fuel is crucial for the global economy because it directly impacts the transportation costs of goods and people. An increase in the price of fuel increases transportation costs, which in turn makes products and services more expensive, affecting both consumers and companies.
Global Petrol Prices, in charge of constantly tracking gasoline prices both per gallon and per liter, has released a renewed list through June 2024 that includes fuel costs in partner South American countries.
What is the country with the most expensive gasoline in South America?
Uruguay is ranked 14th in the world ranking of Global Petrol Prices as the country with the most expensive gasoline in Latin America. The price of a liter of gasoline is US$1,978, which is equivalent to US$7,486 per gallon.
Taxes on gasoline are the main reason for this situation under the government of President Luis Lacalle Pou. As for oil, its cost is the same for all countries, including those that import fuel.
Uruguay is the country with the most expensive fuel. Photo: Weekly Magazine
“In Uruguay, Fuel has a substantially higher tax burden than in other countries,” Uruguayan economist Agustín Iturralde told AFP. In addition, he highlighted that another reason for the high prices is the global increase in energy. “Energy is rising ruthlessly in the world and that is the explanation why it went up now. (…) It is a global trend,” he concluded.
However, this problem did not appear during Lacalle Pou’s mandate. The South American country led the ranking of the highest prices per liter of fuel in Latin America since 2001, according to Cepal.
Which country has the cheapest gasoline in South America?
Venezuela with US$ 0.035, being the cheapest gasoline in Latin America and the world mainly due to its vast oil reserves, which allow large quantities of gasoline to be produced at a relatively low cost. The government has historically maintained a policy of high subsidies and price controls to ensure that the cost of gasoline is negligible for citizens. This strategy seeks to maintain popular support and avoid social discontent.
The Venezuelan nation has the cheapest gasoline in the world. Photo: La Razón
Internal production costs are low due to existing infrastructure, although lack of investment and deterioration have affected production capacity. Hyperinflation and the devaluation of the Venezuelan currency also contribute to keeping prices low in nominal terms.
The Russian invasion of Ukraine has caused an increase in international prices for oil and other raw materials, and the cost of gasoline has become a topic of global debate. Since taxes represent a significant portion of the retail price of fuel, countries with lower taxes on gasoline continue to have the lowest prices. Being an example of this Venezuela.
The 5 countries with the largest oil reserves
- Venezuela: 303.2 billion barrels.
- Saudi Arabia: 267.2 billion barrels.
- Iran: 208.6 billion barrels.
- Iraq: 145,000 million barrels.
- United Arab Emirates: 113,000 million barrels.
What is the region in South America that has more oil than all of Saudi Arabia?
The FPO It is also synonymous with significant challenges. He heavy oil and extra heavy that predominates in this region presents notable obstacles for its extraction, transportation and refining.
Unlike light oilcheaper to produce and process, the FPO crude oil requires advanced and expensive technologies to use. Methods such as steam injection and the use of diluents are essential to mobilize this viscous oilwhich increases production costs and limits its profitability in markets with low crude oil prices.
Venezuela: the country with the largest gold reserve in Latin America
The most recent Trading Economics report showed that Venezuela ranks first in Latin America with the largest gold reserves, and its central bank holds approximately 161 tons of gold. Compared to regional neighbors such as Brazil and Mexico (130 and 120 tons respectively), this figure places the country in a significant position, occupying second place on the American continent after the United States.
