World Energy Outlook 2006

Figure 11.5: Change in Real Energy End-Use Prices by Region and Fuel,
1999-2005
100%
80%
60%
40%
20%
0%
–20%
OECD
total
OECD
Europe
OECD
Pacific
OECD
North America
Oil products Natural gas Coal Electricity
In most countries, taxes are the main reason why local oil-product prices have
increased proportionately less than import prices and less than the prices of
other end-use fuels. Road-transport fuels are typically the most heavily taxed
products in all regions. In OECD countries, taxes on gasoline currently range
from 13% to 70% of the price at the pump, while diesel taxes range from
11% to 68%. Taxes account for more than half of the gasoline pump price in
22 of the 29 OECD countries surveyed by the IEA. Road fuel tax rates are
highest in Europe and lowest in the United States. In non-OECD countries,
rates are generally lower, so that pump prices have often risen more in
percentage terms than in the OECD (Figure 11.6). In no country have pump
prices increased as much in percentage terms as crude oil prices. Some non-
OECD countries, including China, have limited increases in final prices,
shielding consumers from higher import costs. Other oil products and other
forms of energy, such as coal, are generally taxed at much lower rates or, in
some cases, not at all.
Natural gas prices to end users have also increased to varying degrees across
countries, mainly because of differences in pricing practice and regional market
conditions. Gas prices to end users fluctuate much less than import or wellhead
prices because regulated transportation costs, which are usually relatively
stable, account for a significant share of the final price. In the OECD, gas
prices have increased most in recent years in North America because of
particularly tight gas supplies in the region. In Japan, they actually fell slightly
276 World Energy Outlook 2006 - FOCUS ON KEY TOPICS
© OECD/IEA, 2007