Top 10 Countries with the Cheapest Gasoline Prices in the World

Algeria is the largest country in both Africa and the Arab world, spanning 919,600 square miles. Rich in natural resources, it is an OPEC member. Algeria ranks 10th globally in proven natural gas reserves, is the 6th largest exporter of natural gas, and has the 3rd largest shale gas reserves. It also holds the 16th position in proven oil reserves. With hydrocarbon revenues, Algeria's foreign currency reserves are around $75 billion, although this amount has significantly decreased since 2014 due to falling oil and gas prices.

Furthermore, Algeria's foreign debt is minimal, standing at just 2% of GDP. A large portion of the country remains unexplored (fewer than 20 wells per 10,000 square miles), offering extensive opportunities for foreign companies to invest in joint ventures to discover new reserves. Sonatrach, the state-owned national oil company and the largest company in Africa, controls about 80% of Algeria's hydrocarbon production, while international oil companies (IOCs) account for the remaining 20%. Along with natural gas, Algeria is a major oil producer, with proven oil reserves of 12.2 billion barrels. The country exports 540,000 barrels per day from a total output of around 1.1 million barrels per day. All proven oil reserves are located onshore, although offshore exploration is still in its early stages.

The oil and gas industry in Kuwait is the largest sector in the country, accounting for nearly half of its GDP. Kuwait has proven crude oil reserves of 104 billion barrels (15 km³), representing about 9% of global reserves. It ranks as the fourth largest oil reserve holder in the world, with the Burgan Field being the second-largest oil field. Kuwait is the 11th largest oil producer globally and the 7th largest exporter. Its oil production makes up 7% of the world’s total output.

As the government of Kuwait owns the oil industry, it exercises substantial control over the country's economy, contributing about 43% of the GDP. Kuwait's oil exports fluctuate based on domestic consumption demands and are largely determined by international price trends and production quotas set by OPEC, of which Kuwait is a member. However, enforcing OPEC quotas has proven difficult, and Kuwait, like other countries, has been accused of breaching these limits. In 2005, the country’s oil production stood at 2.418 million barrels per day (estimated for 2005).

Angola is the second-largest oil producer in sub-Saharan Africa and an OPEC member, with a daily production of approximately 1.37 million barrels of oil (bpd) and an estimated natural gas output of 17,904.5 million cubic feet. However, due to a significant drop in oil prices and limited foreign currency, investments in new or existing oil and gas fields have been severely restricted between 2014 and 2018. This has resulted in a daily output that remains well below its full production capacity.

Angola holds 9 billion barrels of proven oil reserves and 11 trillion cubic feet of verified natural gas reserves, highlighting the country’s substantial potential for economic development and new business opportunities. The oil industry in Angola is dominated by upstream activities, including offshore exploration and production. Nearly 75% of the country’s oil production comes from offshore fields, and the rich offshore continental shelf is divided into 50 blocks, with plans to auction new blocks from 2019 to 2025, potentially doubling the number of exploration areas.

Turkmenistan ranks seventh globally for fuel prices, offering the lowest rates in Central Asia. Fuel costs worldwide are of great public interest due to their significant impact on the prices of other goods, especially food products and services, which carry social consequences. Rising fuel prices can trigger inflation, affecting production, transportation, storage, and retail prices across the supply chain. Some economists argue that fuel should be considered a direct part of the consumer basket. Fuel prices are influenced by a range of internal and external factors, from global oil prices to each country's taxation policies.

The consistently low fuel prices in Turkmenistan are due to the country’s substantial energy potential, with vast global hydrocarbon reserves, and its government’s social policy priorities. Turkmenistan produces and refines significant amounts of oil, some of which are exported to other nations. According to a report from the 4th meeting of Energy Ministers of the Economic Cooperation Organization (ECO), over the past three years, around 20.7 million tons of Turkmen crude oil and petroleum products have been transported to global markets via the Baku-Tbilisi-Ceyhan (BTC) pipeline.

Nigeria is one of the largest oil producers in Africa, making fuel an essential product for the nation. In fact, oil is so integral to the Nigerian economy that any fluctuations in fuel prices can have a significant impact on both macro and microeconomic indicators. Crude oil is the backbone of the national economy, with much of Nigeria’s income and budgetary support coming from the oil and gas sector since 1960.

According to a recent report by an international driving education company, Nigeria boasts the eighth cheapest fuel in the world. Published in April, the report ranked Nigeria at eighth on the global fuel price index, with a gallon costing just $1.82, or 0.40 USD per liter. Many of the countries with the cheapest fuel are major oil producers, with Venezuela, the country with the world’s largest oil reserves, topping the list at a mere $0.03 per liter (about $0.11 per gallon).

The retail price of fuel products, whether gasoline or diesel, in Malaysia has been regulated since 1983, based on operational rates, profit margins for fuel distributors, commissions for gas station owners, sales tax, and subsidies. Due to the availability of subsidies and sales tax exemptions, fuel prices in Malaysia are the cheapest compared to neighboring Southeast Asian countries. However, there are several factors that make it difficult to compare fuel prices in Malaysia with those in Indonesia.

First, Malaysia is a net oil exporter, whereas Indonesia is a net importer. Second, Malaysia's population is 32 million, much smaller than Indonesia’s 260 million. When it comes to vehicles, Malaysia has 33 million cars, while Indonesia has more than four times that number, with 145 million vehicles. Finally, Malaysia's infrastructure and distribution system are simpler compared to Indonesia's, making the process of fuel distribution less complex.

Among the former Soviet republics, Kazakhstan has the second-largest proven oil reserves and is the second-largest producer, with a daily output of 1.7 million barrels. However, as a landlocked country without direct access to global sea routes, Kazakhstan relies heavily on pipelines to export its oil to international markets. Due to the country's significant production potential, many expect that one day Kazakhstan could become a large enough supplier to challenge OPEC's influence or export large quantities of oil and gas to Europe without Russia's involvement.

Estimates currently place Kazakhstan's proven oil reserves at around 30 billion barrels. Following the collapse of the Soviet Union, foreign investment from international oil companies has boosted Kazakhstan's oil production to over 1 million barrels per day. The country's Tengiz and Karachaganak fields account for half of the total output, while the third major field, Kashagan, is expected to add 347,000 barrels per day once it becomes operational.

In crisis-stricken Venezuela, one dollar can buy two cups of Polar beer, a dozen eggs, or a chocolate bar. Alternatively, if you take advantage of the black market exchange rate, it’s enough for million liters of gasoline. For years, Venezuela has heavily subsidized fuel, resulting in gasoline being virtually free within the country—one liter of gasoline costs just one bolivar, essentially nothing. The practice of nearly free gasoline has a long history in this oil-rich nation, going back well before the era of former leader Hugo Chavez.

The concept of nearly free gasoline, seen as a fundamental right, is deeply embedded in the collective mentality of the Venezuelan people. In 1989, in order to comply with the IMF’s structural adjustment plan, President Carlos Andres Perez approved an increase in fuel prices. More recently, President Maduro announced a gradual fuel price hike to be implemented over two years, which will not affect everyone equally. Venezuelans with special government aid cards will still be able to access fuel at ridiculously low prices.

Despite all the challenges facing the nation, Libya has never ceased oil production. Some experts believe that stabilizing Libya’s oil output could help reduce global fuel prices and support the country. Although the United States has urged Saudi Arabia to increase oil production to ease market pressure, Saudi Arabia has not responded significantly. Instead, analysts note that Libyan oil has played a key role in pushing global oil prices below $100 per barrel in early August.

After a prolonged decline, Libya’s oil production has risen to over one million barrels per day since mid-July. Previously, Libya’s output was only about half that amount due to the country’s ongoing political instability. Now, some experts suggest that Libyan oil may not only help restore balance to the international oil market and lower prices but also potentially bring long-term political stability to the country itself. Libya’s Ministry of Oil has previously stated that it plans to increase production to 2-2.5 million barrels per day within the next five years. Adding this additional oil to the market continuously could significantly impact global prices.

Iran has some of the cheapest fuel in the world, with gas costing as little as 5 cents per liter, or about 20 cents per gallon. This is dramatically lower than the prices in other oil-producing nations in the region, where fuel can be 10-20 times more expensive. In Europe, the price of gasoline is nearly 40 times higher than in Iran. Subsidized fuel has been a part of Iran’s economy since before the 1979 revolution, and since then, the government has continued to increase subsidies, widening the price gap between Iran and other countries. As an oil-producing nation, the government follows the logic of 'taking care of its people' through fuel subsidies.

Official estimates suggest that Iran’s annual fuel subsidies cost the government about $60 billion, which is higher than the country’s oil export revenue. The government is once again considering raising fuel prices, though officials and parliament members continue to deny that it will happen this year. In the southern regions of Iran, the government has already experimented with higher prices by offering discounted fuel to everyone, while providing unlimited fuel at 50 cents per liter for those who drive more and are able to pay for it.