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are low compared to the remaining G-7 countries.' Japan, Italy, and Germany typically report prices that are at the high end of the range of G-7 energy prices. The end use prices in Mexico--the United States' other close neighbor--often are less than or equal to U.S. prices.

The range of energy prices can vary widely for any given energy source between the Organization for Economic Cooperation and Development (OECD) member countries. For instance, residential electricity prices range from 6 cents per kilowatt-hour (kwh) in Canada to 23 cents per kwh in Japan, a spread of 17 cents (Table 1). The reported U.S. price for residential electricity in 1996 was 8.4 cents per kwh. Nevertheless, of the 28 OECD countries compared, 22 reported industrial electricity prices that were higher than the U.S. prices and 20 reported residential electricity prices higher than the United States.

Except for light fuel oil in the residential sector in the United Kingdom, the United States reports the lowest oil prices for every available sector and end use of all the G-7 countries. Canadian oil prices are fairly close to the U.S. prices with the possible exception of the heavy fuel oil price for electricity generation. However, the latest available Canadian price for this is from 1983, and therefore not really comparable to 1996 prices (Table 2).

Among the G-7 countries, Canada and the United Kingdom's industrial natural gas prices are substantially lower relative to the United States. In fact, Canadian natural gas prices are substantially lower than U.S. prices for all available end use sectors (Table 3).

The United States reported industrial steam coal prices in 1996 that were lowest of all OECD members who reported coal prices, except for Australia. Whereas U.S. industrial steam coal prices for 1996 were $57 per ton of oil equivalent (toe), Australian prices were $50 per toe (1989 was latest available Australian estimate). Industrial coking coal also cost the lowest per toe in Australia ($33 per toe-1989 estimate). Prices in France ($70 per toe) and Portugal ($65 per toe) were also lower than those of the United States ($74 per toe); and Canadian prices were fairly close ($79 per toe) (Table 4).

The effects taxes have on energy prices are demonstrated in the comparison of motor gasoline and automotive diesel prices. The relative price of gasoline among OECD countries corresponds to the taxes paid for gas in that country (Figure 1). In Mexico and the United States, for example, the portion of unleaded gasoline prices attributed to taxes is less than 30 percent. These two countries define the low range of the gasoline prices across all types of gasoline except for premium leaded gasoline for which neither country reports prices. On the other end of the spectrum, Norway's gasoline price includes one of the higher tax percentages

'G-7 countries include Canada, France, Germany, Italy, Japan, United Kingdom, United States.

(about 75 percent) and Norway defines the high range of gasoline prices for all gasoline types except regular unleaded gasoline, which the country does not report.

The source of the energy prices is the International Energy Agency's (IEA) Energy Prices and Taxes report, a quarterly publication that includes historical end use prices for various energy sources for all of the OECD member countries, except Iceland. U.S. data are not entirely comparable with other countries presented in the IEA report because taxes are not always reported by the United States except for gasoline and automotive diesel oil.

The IEA report tries to include the end-use prices that are the prices actually paid by the consumer (that is, net of rebates and including all taxes). However, not all of the taxes associated with the U.S. energy prices, except for gasoline and automotive diesel oil are reported. For example, for natural gas prices, sales and other taxes itemized directly on customers' bills are not included in the price calculations, although Federal, State, and local taxes, surcharges, and adjustments billed to the consumer are all included in the prices. For electricity, the taxes paid directly by the electric utilities (and not the end users) are considered operating costs and are passed onto the consumers, so they are included in the price. On the other hand, depending on the jurisdiction, taxes collected from the consumer and turned over directly to a government authority are not generally included in the reported revenues and, therefore, are not included in the price calculations.

Table 1. Electricity Price by End Use for the G-7 Countries, 1996

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Source: International Energy Agency, Energy Prices and Taxes, Second

Quarter 1997.

Table 2. Oil Prices for Industrial, Electricity Generation, and Residential Sectors for the G-7 Countries, 1996

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Source: International Energy Agency, Energy Prices and Taxes, Second Quarter, 1997

Table 3. Natural Gas Prices by End Use Sector in the G-7 Countries, 1996 (U.S. Dollars per Tons of Oil Equivalent)

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Source: International Energy Agency, Energy Prices and Taxes, Second Quarter 1997

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Source: International Energy Agency, Energy Prices and Taxes, Second Quarter 1997

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