The real cost of a gallon of gasoline, after accounting for all costs and removing all existing subsidies, is estimated to be less than $1.

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Quizplus · Accepted Answer

The real cost of a gallon of gasoline is difficult to determine precisely, but it typically includes the cost of crude oil extraction and refining, transportation, distribution, and retailing, as well as taxes and various externalities such as air pollution, climate change, and public health impacts. According to a 2016 study by the International Monetary Fund, the global average cost of gasoline (excluding subsidies) was $1.43 per liter, which is equivalent to $5.41 per gallon. However, this estimate does not include many indirect costs that are difficult to measure, such as the costs of military protection, insurance against accidents and spills, and damage to ecosystems and biodiversity. Furthermore, some countries and regions may have lower or higher costs depending on their specific circumstances, such as the availability of domestic resources or alternative fuels, the level of taxation and regulation, and the degree of market competition. Therefore, it is unlikely that the real cost of a gallon of gasoline could be less than $1 in most parts of the world.

The Real Cost of a Gallon of Gasoline, After Accounting