Petoria has an authoritarian type of government with a unitary system. Peter is the President of Petoria and is the only leader of his nation. He is the central government and has all of the power. Two benefits he has are:
- He can do whatever he wants within his own nation.
- He has diplomatic immunity.
He also has diplomatic immunity. Diplomatic immunity means that as a diplomat, he has "the privilege of exemption from certain laws and taxes granted... by the country in which [he is] working." In the episode, Peter is shown doing graffiti on walls in America, stepping on grass where it says not to, not paying for drinks, etc.
Although it may seem like a luxury at first, by not having a federal government, the Griffins suffer by not having things a government would normally supply. For example the Griffin family has no water, electricty, or gas. The kids also can't go to school, because Petoria does not provide schools. So they have to be home-schooled. Lastly, Petoria has no army to defend the Griffins againts the U.S. Army or any other foreign attacks.