(Augut 3, 2011) We frequently hear about the high cost of gasoline in places like the U.K. or more recently we hear the tumult coming from Israel concerning gasoline prices of more than $8.00 per U.S. gallon. Much of the pricing around the world is a combination of material costs and added taxes.

Much of the debate in the U.S. centers on using taxes to force consumers to cut back on their driving or force the automakers to increase the miles per gallon average of their vehicles — the goal being a reduction of imported oil and a reduction of our dependence on sources from places where we may not want to do business.

The U.S. Administration, California’s Clean Air Board and 15 automakers have just agreed to new standards of 54.5 mpg — fleet average — for 2025 with rules still to come by September. Of course the crazy thing about that scenario is as we reduce our dependency on imported oil the cheaper the oil will get and then we will probably want to go buy it because of the price.

The caveat there is that China will probably soak up all the oil OPEC and others can produce and we will end up needing taxes and higher mpg vehicles to accomplish our goals.

Here’s a look at the average gas prices in early March for 11 countries around the world, collected by the German Agency for International Cooperation:

Turkey
$9.96 per gallon

Turkey has the highest price on our list, soaring to almost $10 per gallon. Istanbul consistently ranks as one of the most expensive cities in which to buy gas.

France
$8.29 per gallon

European countries are well-known for their sky-high gas prices. France is no exception, levying taxes of over $4.50 per gallon. One trade-off is Europe’s ubiquitous train system, with high-speed trains such as the Eurostar and Thalys linking the continent.

Japan
$6.62 per gallon

The island nation taxes motorists almost $3 per gallon, according to Energy Détente. A state-of-the-art railway system, which includes lightning-fast shinkansen (bullet trains), offsets the pain at the pump.

Brazil
$5.98 per gallon

In the Western hemisphere, only the U.S. and Canada outpace Brazil’s appetite for energy. The country is somewhat insulated from rising world oil prices because of its local supply of ethanol, harvested from sugarcane. Each of the country’s 33,000 gas stations offer pure hydrated ethanol, according to Brazil’s Surgarcane Association. And motorists can drive Flexfuel vehicles, designed to run on a mixture of gasoline and ethanol.

Canada
$5.56 per gallon

Although Canada is a major producer of oil (it’s the U.S.’s main provider, accounting for 24% of our crude oil in January), heavy taxes hit Canadian drivers hard. Pricing methods vary among provinces, with some choosing to regulate and others opting out. In February, Ontario’s motorists paid about 38% in taxes at the pump, more than triple the U.S. rate.

Australia
$5.41 per gallon

Australia’s gas prices are determined by a deregulated market where competition is the name of the game. A benefit to Australian consumers right now is their thriving currency, which recently traded at a record-breaking rate against the U.S. dollar.

India
$5.03 per gallon

In June 2010, the Indian government decided to deregulate gasoline prices, doing away with the subsidies that had long kept the cost low. The price has since increased by about $1.

China
$4.54 per gallon

China’s economic regulatory agency, the National Development and Reform Commission, adjusts the retail price of gasoline when the cost of crude oil changes by more than 4% over 22 business days. “When oil prices rally, China sometimes keeps oil lower than international rates to keep the economy going, prevent protests and promote social stability,” says Antoine Halff, a senior oil market analyst for the U.S. Energy Information Administration.

Iran
$1.44 per gallon

Although Iranians enjoy a gas subsidy, the government recently reduced its assistance, causing prices to soar. Drivers used to purchase a rationed 60 liters (about 16 gallons) of gas at about 10 cents per liter, with taxi drivers allowed more. The price has since quadrupled for the same fixed amount, according to Armin Wagner, an analyst at the German Agency for International Cooperation, a German-based group that studies global development.

Saudi Arabia
$0.61 per gallon

Saudi Arabia boasts about one-fifth of the world’s oil reserves and is a significant supplier to the U.S. The price of gasoline is decided by royal decree, selling at a subsidized rate.

Venezuela
$0.08 per gallon

Venezuela boasts the lowest cost of gasoline on our list. Citizens pay just pennies per gallon, enjoying generous subsidies from President Hugo Chavez.

Like Iran and Saudi Arabia, oil-rich Venezuela has stitched affordable gas into its national fabric. “Oil is seen as a national resource, effectively owned by all and to which all are entitled,” says Halff. “The idea of cheap gasoline tends to be firmly entrenched in the political culture of those countries.”

Sources: German Agency for International Cooperation March 2011 Survey; Associates for International Research; Lundbery Survey; US Energy Information Administration; AAA; Mercer; Kiplinger