Russian petrol costs double the US price on salaries seven times lower
Petrol in Russia costs $0.95/l versus $1.13/l in the US, but the average salary is $9,000 a year against $70,000. The real gap is 10 to 12 times.
English · Original discussion in Spanish · Published
Petrol in Russia: double the US price on salaries below 15%
Paying $0.95 per litre of petrol versus $1.13 in the US does not seem like a big difference. But when the average Russian salary barely exceeds $9,000 a year — compared with $70,000 for an American — the paradox becomes a heavy burden. According to GlobalPetrolPrices data from 22 June, a Russian needs to spend a far larger share of their income to fill the tank.
The purchasing power calculation is devastating. A driver in Moscow pays 10 to 12 times more per litre than one in New York, adjusted for income. While an average worker in the US can fill the tank several times a month with little effort, in Russia petrol has become an increasingly inaccessible luxury. The gap has soared since 2021, when the difference was less pronounced.
The trap of nominal prices
Those who argue that Russian petrol is still cheap in absolute terms ignore the salary context. The figure of $0.95 per litre is true but misleading: in March 2022, before the sanctions, the price was around $0.60. The increase has been 58% in just over a year, while salaries have barely grown by a single digit. Meanwhile, in the US the price has risen 12% since then, but with far higher purchasing power.
An energy sector user quipped: "I filled up with diesel at €1.307 a litre, a bit more than the €1.13 shown on the sign, and I think I earn a bit more than the average Russian." The remark sums up the real gap: the average Spaniard, with a salary of around €30,000, is also better off than the Russian, though worse off than the American.
A matter of economic survival
The rising cost of petrol in Russia is not a quirk of the market: Western sanctions have made logistics more expensive and reduced the supply of refined crude. Added to this is the devaluation of the rouble, which makes imports of components more expensive. The result is that, according to some estimates, in remote regions the price can soar to the point where driving becomes impossible.
The comparison with the US is brutal: while the average American spends less than 2% of their salary on petrol, the average Russian can spend up to 15%. For workers in small towns, where public transport is scarce, mobility becomes a first-order problem. The Russian government has tried to contain prices with subsidies, but the fiscal margin has shrunk because of the war.
With these figures, the question hanging in the air is: how long can the Kremlin maintain the fiction of a stable economy while ordinary citizens pay more and more for the basics and earn less and less?
Paying $0.95 per litre of petrol versus $1.13 in the US does not seem like a big difference. But when the average Russian salary barely exceeds $9,000 a year — compared with $70,000 for an American — the paradox becomes a heavy burden. According to GlobalPetrolPrices data from 22 June, a Russian needs to spend a far larger share of their income to fill the tank.
The purchasing power calculation is devastating. A driver in Moscow pays 10 to 12 times more per litre than one in New York, adjusted for income. While an average worker in the US can fill the tank several times a month with little effort, in Russia petrol has become an increasingly inaccessible luxury. The gap has soared since 2021, when the difference was less pronounced.
The trap of nominal prices
Those who argue that Russian petrol is still cheap in absolute terms ignore the salary context. The figure of $0.95 per litre is true but misleading: in March 2022, before the sanctions, the price was around $0.60. The increase has been 58% in just over a year, while salaries have barely grown by a single digit. Meanwhile, in the US the price has risen 12% since then, but with far higher purchasing power.
An energy sector user quipped: "I filled up with diesel at €1.307 a litre, a bit more than the €1.13 shown on the sign, and I think I earn a bit more than the average Russian." The remark sums up the real gap: the average Spaniard, with a salary of around €30,000, is also better off than the Russian, though worse off than the American.
A matter of economic survival
The rising cost of petrol in Russia is not a quirk of the market: Western sanctions have made logistics more expensive and reduced the supply of refined crude. Added to this is the devaluation of the rouble, which makes imports of components more expensive. The result is that, according to some estimates, in remote regions the price can soar to the point where driving becomes impossible.
The comparison with the US is brutal: while the average American spends less than 2% of their salary on petrol, the average Russian can spend up to 15%. For workers in small towns, where public transport is scarce, mobility becomes a first-order problem. The Russian government has tried to contain prices with subsidies, but the fiscal margin has shrunk because of the war.
With these figures, the question hanging in the air is: how long can the Kremlin maintain the fiction of a stable economy while ordinary citizens pay more and more for the basics and earn less and less?
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (12 replies).
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