Why can the oil price of the United States be lower than that of China? Apart from the low tax rate, there is one thing we can't do

International crude oil/

As a high-income developed country, the price level of the United States is much higher than that of China. If it is the same money, the purchasing power in China will be higher than that in the United States. However, there is something cheaper in the United States than in China, and it is used in daily life, that is, refined oil. Why is the oil price in the United States cheaper than that in China?

As we all know, China is the world's largest oil importer, but to say the world's largest oil consumer, it is the United States. Moreover, the United States used to be the world's largest oil importer for a long time, and now it is also the world's second largest crude oil importer. However, the price of refined oil in the United States, which is both a big oil consumer and an oil importing country, is not high. The current oil price is about US $0.66/l, while the average oil price in China is about US $0.86/l. Why?

What are the reasons why the oil price in the United States is lower than that in China?

One reason may be that the price of oil products in the United States, including tax rate, is relatively low. The retail price of refined oil is composed of its own price plus the taxes and fees to be paid. In the case of the same price, the level of taxes and fees determines the oil price. Taxes and fees account for about 12% of the oil price of finished products in the United States, while in China they account for more than 30%. If taxes and fees are removed, the gap between the two will not be big.

Another reason may be the high oil self-sufficiency rate of the United States. We have to admit that in most cases, the cost of importing crude oil will be higher than that of producing crude oil by ourselves. Therefore, the oil prices of countries that are more dependent on importing oil are unlikely to be very low, while those countries with low oil prices are mostly high in oil self-sufficiency.

Since the breakthrough of shale oil technology in the United States, its oil production has soared, and even become the country with the highest oil production in the world. This is also the reason why the United States has been pulled down from China's position as the world's largest oil importer. Because the oil self-sufficiency rate has increased, there is no need to import so much oil. The oil self-sufficiency rate of the United States is about 60%, while that of China is less than 30%, which means that more than 70% of the oil is imported.

In addition, the United States can use its influence to control part of the pricing power of oil. Therefore, when importing oil, it will have a strong bargaining power, and even directly steal oil from other countries. For example, the United States can import a large amount of oil from Canada at a low price, because Canada is also a global oil production and export power, and the United States is Canada's single oil export market, so it has no bargaining power and has to export at a low price.

Therefore, it is not surprising that the oil price of the United States, which can get oil at a lower cost, is lower than that of China.

Although China's oil price level is higher than that of the United States, from a global perspective, China's oil price is only in the middle and lower reaches. Even in neighboring countries, China's oil price is in the middle reaches. India, whose population is similar to China's, but whose income is much lower than China's, has a higher oil price than China's.

The region with the highest oil price was occupied by Hong Kong for a long time. However, there is one country whose oil price has surpassed that of Hong Kong recently. This country is Zimbabwe.

At present, Zimbabwe's oil price has reached $2.86/l, equivalent to 20 yuan / L. I'm afraid few countries can afford such a high oil price.

Zimbabwe is only a poor country in Africa. I am afraid that the high oil price is the result of inflation. It is estimated that few people in Zimbabwe can afford such expensive oil.

So compared with Zimbabwe, the car owners in China are very happy.

[disclaimer] the publication of this article by finance managers for the purpose of transmitting more information does not mean that they agree with their views or confirm their descriptions. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk

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