Gasoline in europe is expensive because of taxes, not due to any inherent supply/demand.
http://goeurope.about.com/od/transpo...gas_prices.htm
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Make no mistake: the price of the raw gas is about the same as the U.S., but Europe taxes gasoline at a higher rate. At the moment, taxes in France make up about 70 percent of the pump price. For comparison, the U.S. federal gasoline tax of of 2005 was 18.4 cents per gallon, with each State adding between 10 and 33 cents of tax, according to Widipedia. That makes the maximum gasoline tax rate 17% in the U.S.
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It's a political thing, the US taxpayer cherishes the freedom of having their own transportation as well as the ability to live in the suburbs if they desire. Part of this now is because of the raising of children as well..many americans do not relish raising their kids in an urban setting..and because the birth rate is higher, there are more folks living out of the cities.
I have seen a movement of people away from the suburbs in recent years as the commutes get longer, more baby boomers don't have kids and they are moving into urban areas. But on the other hand younger people who are going to raise a family move out from the city to get a larger house or for better schools. They commute a long way, but in general automobiles are usually faster (and less restrictive) than public transportation.