Petrol in Nigeria is among the most affordable globally, securing the 22nd position — Report

According to a recent report titled ‘Global Petrol Prices, Octane-95, January 1, 2024’, Nigeria has been identified as the 22nd country with the most affordable petrol on a global scale.

The report, which can be accessed on their website, emphasizes the average global gasoline price of 1.29 US dollars per litre and sheds light on the significant variations in prices influenced by individual countries’ taxes and subsidies.

It is observed that wealthier nations generally have higher prices, while poorer countries and those involved in oil production and export tend to have lower prices. However, the United States stands out as an exception, being an economically advanced country with relatively low gas prices.

The report attributes the differences in prices to the varying taxes and subsidies imposed by different countries.

Although all countries have access to the same international petroleum prices, they choose to impose different taxes, resulting in different retail prices for gasoline. The report also highlights Iran as the country offering the world’s cheapest gasoline at an incredibly low price of $0.029 per litre, while Hong Kong has the highest recorded price at $3.101 per litre.

Significantly, countries like Libya, Venezuela, Kuwait, and Saudi Arabia, which are major oil producers, benefit from remarkably low domestic fuel costs. Iran tops the list with a price of $0.029 per litre, equivalent to N26.52, followed by Libya at $0.031 (around N28.35) and Venezuela at $0.035 (approximately N32.01).

On the other hand, countries such as Hong Kong, Monaco, and Norway, which impose high fuel taxes, consistently experience higher petrol prices, with Hong Kong leading at $3.101 (about N2,835.77) per litre. Nigeria, however, stands out among the countries offering affordable petrol, with a price of $0.722 (equal to N660.25) per litre.

It is worth noting that despite facing challenges in meeting oil production targets, Nigeria remains Africa’s largest oil producer, contributing an average of 1.37 million barrels per day as of November 2023.