Gas Prices in the world and PPP (Purchasing Power Parity)
Looking at this table man can see why 1 USD worth much more in one country than in another country. Therefore, PPP reflects more of the living standards than the GDP in exchange rate.
one gallon = 3.78541 liters
In China, USD $4.01/Gallon, $1.00/L (RMB 6.46/L)
Why is in China such a high gasoline price not really an issue for most car drivers?
It is because 80% car owners only drive some maximal 20 kilometers per day, this needs mostly only 2 liters, so 2 dollars a day, 60 dollars a month, for the car owner that’s well about 360 to 400 RMB (1 dollar = 6 RMB), while for those car owner’s family their netto month income is about 8000 RMB average, so that’s some 5% of the income.
WHAT GOES INTO THE PRICE OF GAS?