Globally, the average price of gasoline around the world is 1.25 U.S. Dollars (1941.46 Naira) per litre, with a substantial difference in these prices among countries.
The differences in prices across countries are due to the various taxes and subsidies for diesel as all countries have access to the same petroleum prices of international markets but then decide to impose different taxes.
As a result, the retail price of petrol is different.
Generally, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices.
Lower petrol prices mean lower operational costs in businesses like shipping, manufacturing, and agriculture, which boosts profitability and encourages expansion.
Iran tops the list with the cheapest petrol prices in January 2025 at $0.029 per litre (44.416 Naira).
These prices are influenced by government subsidies, local taxation policies, and the cost of crude oil. Oil-producing nations often have lower petrol prices due to subsidies and reduced taxation.
The key factors that influence cheaper petrol prices include government subsidies, abundant resources, production costs, and political and social stability.
Here are the 10 countries with the lowest fuel prices in January 2025 according to GlobalPetrolPrices.com.
1. Iran
Iran retains the top rank of the world’s cheapest fuel, priced at just $0.029 per litre (44.416 Naira). its enormous reserves allow it to make petrol at a low cost and it is extensively subsidised by the government to help citizens maintain economic stability.
Even though Iran’s ability to sell oil has been hampered by international sanctions that have restricted access to foreign technologies. Fuel smuggling to neighbouring nations with higher pricing and excessive usage are additional factors.
2. Libya
Libya closely follows Iran with the price of fuel costing $0.031 per litre (47.436 Naira), making it the second cheapest globally.
It has Africa’s largest proven oil reserves, which makes it a resource-rich country. However, the smuggling of subsidised petrol to neighbouring countries has been a recurring issue, leading to loss of revenue.
3. Venezuela
The South American nation offers fuel at $0.035 per litre (54.346 Naira), ranking among the world’s cheapest. It has some of the largest proven oil reserves globally, which allows for low production costs. As part of the nation’s social agenda, the government subsidises petrol to almost zero prices.
Hyperinflation has devalued the currency, making subsidies unsustainable in the long run, with infrastructure and refinery mismanagement having led to occasional shortages despite the low prices.
4. Angola
In Angola, fuel is priced at $0.328 per litre (509.931 Naira). As a leading oil producer in Africa, the country benefits from domestic production, enabling relatively affordable fuel.
Subsidies ensure that petrol remains affordable for citizens, even in rural areas. Oil revenue supports the economy, enabling reduced costs for local fuel. Economic inequality means that subsidies may not benefit all citizens equally and diversifying the economy beyond oil remains a challenge.
5. Egypt
The North African nation sells petrol for $0.339 per litre (525.662 Naira).
Egypt’s fuel prices reflect its dual role as a producer and consumer of petroleum. Egypt subsidises fuel to make it affordable, particularly for lower-income groups. As part of recent economic reforms, the government has introduced gradual subsidy reductions but kept prices lower than global averages.
6. Algeria
Algeria offers fuel at $0.340 per litre (528.279 Naira) and as a significant oil and gas producer, it uses subsidies to make energy affordable for its citizens. Algeria’s vast oil and natural gas reserves help maintain low petrol costs as government subsidies aim to ensure affordability for citizens, but dependence on oil revenue makes the economy vulnerable to fluctuations in global oil prices.
7. Kuwait
Petrol in Kuwait costs $0.341 per litre (528.831 Naira).
Like other countries in this list, Kuwait, with one of the lowest production costs globally, has significant oil reserves that allow for cheap petrol. The government provides subsidies as part of its social welfare programs for citizens.
8. Turkmenistan
Turkmenistan sells fuel at $0.428 per litre (664.777 Naira).
Heavily blessed with natural gas and oil reserves, Turkmenistan keeps fuel prices low through state-controlled pricing and subsidies. Citizens benefit from government policies that provide cheap utilities, including petrol and domestic oil and gas production ensuring affordability without reliance on imports.
9. Malaysia
Malaysia sells petrol at $0.467 per litre (724.671 Naira). As a net oil exporter, Malaysia benefits from domestic production to keep petrol prices low and government subsidies ensure affordability for citizens while promoting economic growth.
10. Kazakhstan
The Central Asian nation’s petrol price is $0.473 per litre (734.465 Naira). Rich in oil and gas resources, Kazakhstan maintains relatively low energy costs for its citizens.
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