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How Affordable is Gas in Latin America?

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Comparing how affordable gas is across Latin America

How Affordable is Gas in Latin America?

As gas prices have risen around the world, not each region and country is impacted equally.

Globally, the average price for a liter of gas was $1.44 USD on June 13, 2022.

But the actual price at the pump, and how affordable that price is for residents, varies greatly from country to country. This is especially true in Latin America, a region widely regarded as one of the worldโ€™s most unequal regions in terms of its income and resource distribution.

Using monthly data from GlobalPetrolPrices.com as of May 2022, this graphic by Latinometrics compares gas affordability in different countries across Latin America.

Gas Affordability in 19 Different Latin American Countries

To measure gas affordability, Latinometrics took the price of a liter of gas in 19 different Latin American countries and territories, and divided those figures by each countryโ€™s average daily income, using salary data from Statista.

Out of the 19 regions included in the dataset, Venezuela has the most affordable gas on the list. In Venezuela, a liter of gas is equivalent to roughly 1.3% of the countryโ€™s average daily income.

CountryGas price as of May 2022 (USD)% of average daily income
๐Ÿ‡ณ๐Ÿ‡ฎ Nicaragua$1.3714.0%
โ€‹๐Ÿ‡ฉ๐Ÿ‡ดโ€‹ Dominican Republic$1.4112.6%
๐Ÿ‡ง๐Ÿ‡ทโ€‹ Brazil$1.4312.5%
๐Ÿ‡ต๐Ÿ‡พโ€‹ Paraguay$1.3912.2%
๐Ÿ‡ต๐Ÿ‡ช Peru$1.5310.2%
๐Ÿ‡บ๐Ÿ‡พ Uruguay$1.929.8%
๐Ÿ‡ธ๐Ÿ‡ปโ€‹ El Salvador$1.149.2%
โ€‹โ€‹๐Ÿ‡ญ๐Ÿ‡ณโ€‹ Honduras$1.338.6%
๐Ÿ‡ฒ๐Ÿ‡ฝโ€‹ Mexico$1.177.8%
๐Ÿ‡ฌ๐Ÿ‡นโ€‹ Guatemala$1.447.7%
๐Ÿ‡ฆ๐Ÿ‡ท Argentina$1.066.7%
โ€‹๐Ÿ‡จ๐Ÿ‡ฑโ€‹ Chile$1.376.6%
๐Ÿ‡จ๐Ÿ‡ทโ€‹ Costa Rica$1.425.9%
๐Ÿ‡จ๐Ÿ‡ด Colombia$0.585.7%
โ€‹๐Ÿ‡ต๐Ÿ‡ฆ โ€‹Panama$1.275.0%
๐Ÿ‡ช๐Ÿ‡จ Ecuador$0.674.1%
๐Ÿ‡ง๐Ÿ‡ด Bolivia$0.543.2%
๐Ÿ‡ต๐Ÿ‡ทโ€‹ Puerto Rico$1.352.2%
๐Ÿ‡ป๐Ÿ‡ชโ€‹ Venezuela$0.021.3%

This isn’t too surprising, as Venezuela is home to the largest share of proven oil reserves in the world. However, itโ€™s worth noting that international sanctions against Venezuelan oil, largely because of political corruption, have hampered the once prosperous sector in the country.

On the other end of the spectrum, Nicaragua has the least affordable gas on the list, with one liter of gas costing 14% of the average daily income in the country.

Historically, the Nicaraguan government has not regulated gas prices in the country, but in light of the current global energy crisis triggered in large part by the Russia-Ukraine conflict, the government has stepped in to help control the situation.

As the Russia-Ukraine conflict continues with no end in sight, itโ€™ll be interesting to see where prices are at in the next few months.

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This article was published as a part of Visual Capitalist's Creator Program, which features data-driven visuals from some of our favorite Creators around the world.

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Energy

Comparing Saudi Aramco’s $1.9T Valuation to Its Rivals

See how much larger Saudi Aramco’s market cap is compared to rivals like Chevron, ExxonMobil, and Shell.

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Putting Saudi Aramco’s Market Cap Into Perspective

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

As of May 2024, there are just six trillion-dollar companies in the world, and only one of them is an oil company.

In this graphic, we put Saudi Aramco’s market cap into perspective by comparing it to the rest of the world’s largest oil companies. Numbers were sourced from Companiesmarketcap.com, and are as of May 24, 2024.

Data and Takeaways

The data we used to create this graphic are listed in the table below.

CompanyMarket Cap
(as of May 24, 2024)
๐Ÿ‡ธ๐Ÿ‡ฆ Saudi Aramco$1,914B
๐Ÿ‡บ๐Ÿ‡ธ Exxon Mobil$509B
๐Ÿ‡บ๐Ÿ‡ธ Chevron$288B
๐Ÿ‡จ๐Ÿ‡ณ Petro China$243B
๐Ÿ‡ณ๐Ÿ‡ฑ Shell$225B
๐Ÿ‡ซ๐Ÿ‡ท TotalEnergies$165B
๐Ÿ‡บ๐Ÿ‡ธ ConocoPhillips$137B
๐Ÿ‡ฌ๐Ÿ‡ง BP$103B
๐Ÿ‡จ๐Ÿ‡ณ Sinopec$102B

Saudi Aramco launched its initial public offering (IPO) on December 11, 2019. It remains the largest IPO in history, raising $25.6 billion and valuing the company at $1.7 trillion. Aramco is also the only trillion-dollar company that isn’t based in the United States.

As of 2022, Aramco had proven reserves equal to 259 billion barrels of oil equivalent, which is massively greater than rivals like ExxonMobil (17.7 billion) and Chevron (11.2 billion).

$1.9T*

It should be noted that the Saudi government directly owns 90% of the company, while another 8% is held by the countryโ€™s sovereign wealth fund. With only 2% of shares available to the public, some believe that the company’s current valuation carries little weight.

For example, a Bloomberg op-ed from 2023 described Aramcoโ€™s valuation as an โ€œillusionโ€ due to its very low trading volume. Over a one year period, Aramco’s average daily turnover was just $51 million, compared to $1.9 billion for ExxonMobil and $1.4 billion for Chevron.

See More Market Cap Comparisons from Visual Capitalist

If you enjoyed this graphic, be sure to check out our similar graphic covering Nvidia.

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