The price of gas is determined by a variety of factors including the cost of crude oil, taxes levied by the government, and the individual country’s economy and currency value. Therefore, a country with a strong oil industry and low taxes can afford to have cheaper gas prices. Some nations even subsidize the cost of gas to make it more affordable for their citizens. Here, we focus on the data in US dollars for increased comparability. So, let’s look into and explore which countries have the cheapest gasoline prices in the world.
Venezuela – $0.06 per gallon
Libya – $0.12 per gallon
Iran – $0.20 per gallon
Angola – $1.19 per gallon
Algeria – $1.28 per gallon
Kuwait – $1.30 per gallon
Egypt – $1.41 per gallon
Turkmenistan – $1.63 per gallon
Malaysia – $1.73 per gallon
Kazakhstan – $1.76 per gallon
Note: These figures are approximate and may vary over time due to fluctuations in the world oil market and individual countries’ economy and policies.
You might be wondering why there such a significant disparity in gas prices across these countries, where filling up your tank in Venezuela costs barely anything, as opposed to paying high prices in some other parts of the globe. Well, we’re about to look into the reasons behind this gas price variation.
Gasoline prices are dependent on several factors. These can include the cost of crude oil, taxes, and other government policies. For example, countries that are rich in oil reserves often have cheaper gas prices, as they have readily available resources and do not have to rely on importing oil.
When looking at our list of countries with the cheapest gas prices, you might notice that several of them, such as Iran, Libya, and Venezuela, are significant oil producers. These countries have plentiful oil reserves, which allows them to keep gas prices low. In addition, some governments provide subsidies, absorbing a part of the cost to help keep gas prices affordable for their citizens.
Another important factor to keep in mind is the influence of exchange rates on gas prices. In countries where the local currency is weak compared to the US dollar, the price of imported oil can be very high, which can then lead to high gas prices. However, in countries with strong currencies or where oil is produced locally, this is less of an issue. Economic conditions also play a significant role. For example, in crisis-ridden Venezuela, while gas prices are astonishingly low, this is more a sign of an extreme economic crisis than an actual benefit for ordinary citizens.
These are just a few reasons why gas prices vary so dramatically across borders. While we’d all love to pay less at the pump, understanding the reasons behind these disparities can help us appreciate the bigger picture of world economics and energy policies.
Let’s go on a whirlwind tour around the globe, where we’ll zoom in on the ten nations where you can fill up your tank without emptying your wallet. Starting with number ten, let’s gas up and hit the open road — figuratively, of course.
10. Kazakhstan
Renowned more for its stunning landscapes than its petrol stations, Kazakhstan, nevertheless, kicks off our list of the top 10 countries with the cheapest gas prices. With prices at just $1.76 per gallon, driving through the country’s vast steppes won’t break the bank.
It’s worth noting that Kazakhstan, a country rich in natural resources like oil and gas, heavily subsidizes fuel prices. These subsidies are a significant factor behind the affordable rate of $1.76 per gallon. So, if you find yourself in this part of the world and decide to go on a road trip through its wild beauty, you can do so without worrying about fuel costs!
9. Malaysia
8. Turkmenistan
This state-run control of energy is not without its controversies. Turkmenistan strictly regulates private car ownership, therefore, while the gas may be cheap, it’s certainly not simple for every citizen to enjoy this benefit. Besides, the reported prices are effectively state-subsidized and do not reflect the real market value.
7. Egypt
Yet, you’ll notice it’s not just about domestic oil production. Egypt also leverages the Suez Canal, an essential trade route for oil transport. This boosts their economy and helps keep domestic fuel prices low. It’s an interesting bit of trivia that might strike up a conversation next time you’re fueling up at a petrol station in Cairo.
6. Kuwait
Blessed with large oil reserves, Kuwait offers fuel at just $1.30 per gallon. Reasonably low production costs and high export rates contribute to this desirable value.
While Kuwait’s cheap gas prices may seem attractive, it’s worth noting that the cost doesn’t just revolve around dollar figures. Wide issues of environmental sustainability and economic dependency also persist. Nevertheless, for the average Kuwaiti and visitor alike, the low cost at the pump is certainly a welcome reality.
5. Algeria
In Algeria, the fifth of the top 10 countries with cheapest gas prices, you’ll find prices at a mere $1.28 per gallon. This North African nation’s rich natural gas reserves largely influence the price per gallon.
Algeria’s vast natural gas reserves aren’t just for show; they’re a considerable part of the reason why this country enjoys such cheap gas prices. When you’re sitting on top of such a large amount of natural gas, it only makes sense to share the benefits with your citizens, right?
4. Angola
Fuel prices take a significant dip in Angola, where you’d part with just $1.19 to purchase a gallon of gasoline. This drop is largely attributed to vast oil reserves coupled with lower domestic demand.
Yet, this doesn’t imply that lower petroleum prices always equate to a robust economy. Angola, for instance, has been grappling with an economic crisis despite being the second-largest oil producer in Africa. High inflation and a slump in oil prices over the past decade have led to financial hardship for the nation.
3. Iran
When considering the incredibly low price of gas in Iran, it’s important to remember the economic and political factors at play. The Iranian government has historically subsidized fuel costs heavily, essentially absorbing a large portion of the expense in order to burden their citizens less. However, while it’s thrilling for drivers, it’s important to take into account the economic challenges these subsidies can bring about.
- Firstly, when the government foots the bill for something as significant as fuel, it can potentially lead to budget constraints and economic instability.
- Secondly, such heavy subsidies often encourage overconsumption and wastage, which can strain resources and cause environmental damage.
- Lastly, subsidized fuel often encourages smuggling, particularly into neighboring countries with higher fuel prices.
Regardless, for the average person in Iran, filling up the gas tank is a relatively inexpensive effort compared to most regions in the world.
2. Libya
However, it’s critical to understand that while low gas prices might seem like a gift to the average citizen, they’re often a symptom of deeper economic troubles. In the case of Libya, ongoing political instability since 2011 has severely impacted the nation’s infrastructure and economy. Despite being one of the richest countries in terms of resources, pervasive issues like inflation and a lack of employment opportunities contribute to the reality behind the low gas costs.
1. Venezuela
Finally, we reached our destination: Venezuela. It tops the list of top 10 countries with the cheapest gas prices, costing an unbelievable six cents per gallon. Fueled by the country’s colossal oil reserves and substantial governmental subsidies, these prices remain unequaled worldwide.
Despite this advantage, it’s essential to keep in mind that while purchasing gas comes easy on the pocket, it’s a different story for everyday Venezuelans. Economic disparities and the impact of hyperinflation make ordinary commodities incredibly costly for the local population.
