Tuesday, April 25, 2006

The Price of Tea in China

We've heard that gas prices in the States are increasing, so we thought we'd share a quick comparison.

Pump price for 93 octane:
  • 4.65 Yuan/Liter
  • 8.011 Yuan/US$
  • 0.264 Gallons/Liter
  • = 2.20 US$/Gallon

To put this in perspective:
The fuels here are much dirtier than the stuff in the States, so a higher octane is required. The three octane options in China are 93, 97, and 98.
17% of the overall price is a Value Added Tax
And finally, the Chinese government heavily subsidizes fuel to maintain current growth of the economy.

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