Enemies of Energy: Energy prices

Editor’s note: The following is an excerpt from the “Myths and Misconceptions” section of Enemies of Energy, a research report created for the Capital Research Center. The page for the full report is here: Enemies of Energy.

***

Anti-energy NGOs and the corporate media rarely address the low energy prices paid by Americans relative to the rest of the rich world.

The United States produces 26 percent of the Earth’s gross domestic product (GDP), which is more than the next three largest economies (China, Germany, and Japan) combined. American economic dominance is more striking when displayed relative to population. The World Bank reported that American gross domestic product per person in 2024 (the latest year in their online database) was $84,534. The GDP per person of second place Germany was $56,103, or just 66.4 percent of the American total. Italy and Japan had less than half the GDP per person of the USA. And China—the world’s second largest economy when measured by total GDP—provided just $13,303 per person, or less than 16 percent of the American average. ^[i]

***

******

Far wealthier than the people living in the planet’s nine other biggest economies, Americans could afford to pay far more for energy. But we do not. Relative to the rest of the world, particularly the nations that have placed a high priority on phasing out hydrocarbon fuels, Americans pay comparatively little for power and gasoline.^{[ii] [iii]}

Of those ten largest economies, none have so fully embraced abandonment of hydrocarbon fuels and nuclear energy as Germany and the United Kingdom. Both have just as eagerly embraced replacing these reliable options with weather dependent wind turbines and solar panels. (In January 2026, the current German chancellor belatedly conceded that shutting down the nation’s once-potent fleet of nuclear stations was a mistake.)^{[iv] [v]}

The UK and Germany both pay more than double what Americans do for electricity, as does Italy. ^[vi]

The story is similar for gasoline prices. ^[vii]

***

***

For the above, it is important to note that these prices account for different taxes imposed by the respective nations. But tax policy, as it applies to energy purchases, is inseparable from energy policy.

For example, California, the American state that has most closely replicated the anti-hydrocarbon energy policies of Germany and the United Kingdom, also replicates the high energy prices.

In 2024, Californians paid the second highest retail price for electricity in the nation, behind only Hawaii (the state with the greatest logistical challenges to bringing in power and everything else). Californians paid more than double the USA average per kilowatt hour and—making the sting worse—more than double all three of their immediate neighbors (Arizona, Nevada, and Oregon). ^[viii]

Similarly, for January 2026, AAA reported Californians paying an average of $4.21 for a gallon of regular gasoline. This was $1.36 more than the national average of $2.85 per gallon and (as with electricity) second highest behind only Hawaii. And once again, Californians living near their border could have saved 84 cents per gallon by driving to Nevada, 86 cents by going to Oregon, and $1.23 in Arizona. ^[ix]

***

PDF hyperlink to full report

Endnotes

[i] “GDP (current US$)” World Bank. Accessed January 14, 2026. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD

[ii] “GDP (current US$)” World Bank. Accessed January 14, 2026. https://data.worldbank.org/indicator/NY.GDP.MKTP.CD

[iii] “Cost of Electricity by Country 2026.” World Population Review. Accessed January 21, 2026. https://worldpopulationreview.com/country-rankings/cost-of-electricity-by-country

[iv] “Germany rethinks nuclear phaseout.” Nuclear Engineering International. January 21. 2006. Accessed January 21, 2026. https://www.neimagazine.com/news/germany-rethinks-nuclear-phaseout/?cf-view

[v] “Let Ed Run It.” Doomberg. April 23, 2025. Accessed January 21, 2026. https://newsletter.doomberg.com/p/let-ed-run-it

[vi] “Cost of Electricity by Country 2026.” World Population Review. Accessed January 21, 2026. https://worldpopulationreview.com/country-rankings/cost-of-electricity-by-country

[vii] “Gasoline prices, US Gallon.” GlobalPetrolPrices.com. Prices for January 18, 2026. Accessed January 22, 2026. https://www.globalpetrolprices.com/gasoline_prices/

[viii] “Electricity | State Electricity Profiles | US Electricity Profile 2024.” Energy Information Agency | U.S. Department of Energy. Accessed January 22, 2026. https://www.eia.gov/electricity/state/

[ix] “National average gas prices | January 22, 2026” AAA. Accessed January 22, 2026. https://gasprices.aaa.com/

Source: https://capitalresearch.org/article/enemies-of-energy-energy-prices/