Why Gasoline Is So Much Cheaper in the U.S. Than Overseas

The war in Iran has lifted U.S. gasoline prices to more than $4 a gallon, the highest average price in four years.

Yet U.S. prices are still lower than they are in Germany, South Korea and most other developed countries.

The U.S. produces more oil than any nation in the world, and far more than it did during the oil crisis of the 1970s. So it is more insulated from global supply shocks than many nations are.

Americans are sensitive to gas prices—the average American drives 13,000 miles a year, according to the federal government. Yet for years, U.S. consumers have paid lower gas prices than consumers in many other nations.