Venezuela, Iran and Kuwait top list for world’s cheapest petrol
Oil-rich nations in South America, the Middle East and Africa continue to offer the lowest pump prices, with government subsidies keeping fuel costs far below the global average.
Venezuela remains the world’s cheapest country for petrol, with drivers paying as little as $0.01 per litre at the pump. Iran and Kuwait follow closely, both offering heavily subsidised fuel at under $0.40 per litre. These countries, all major oil producers, keep domestic prices low through government intervention, in stark contrast to the high pump prices seen across much of Europe and Asia.
Subsidies and taxes drive price differences
The main reason for these sharp differences is government policy. In oil-rich states such as Venezuela, Iran, Kuwait, Nigeria and Egypt, subsidies keep retail prices well below the world average, which hovers around $1.13 per litre. Governments in these countries use low prices to share oil wealth with citizens or maintain political stability. In contrast, European and Asian markets typically impose heavy taxes on fuel, pushing prices above $2 per litre in places like Hong Kong, Norway and the Netherlands.
Russia, another major producer, also features in the global top ten for cheap petrol, with Bloomberg reporting average prices of $0.70–$0.72 per litre in 2018. Kazakhstan, with $0.56 per litre, is among the lowest outside the Middle East, helped by domestic production and moderate taxation. Turkmenistan, Egypt and Ecuador round out the list of countries with the cheapest fuel, all benefiting from either subsidies or low taxes.
African and South American markets
Nigeria consistently ranks in the global top ten for cheap petrol, with official prices around $0.42–$0.44 per litre. Despite periodic shortages and distribution issues, government controls keep prices well below the global average. Ecuador and Bolivia also maintain low retail prices, supported by state intervention and oil revenues.
- Venezuela: $0.01/litre
- Iran: $0.28–$0.36/litre
- Kuwait: $0.35/litre
- Turkmenistan: $0.29–$0.43/litre
- Egypt: $0.37/litre
- Algeria: $0.37/litre
- Ecuador: $0.39/litre
- Bahrain: $0.42/litre
- Nigeria: $0.42–$0.44/litre
- Russia: $0.70–$0.72/litre
How cheap fuel affects motorists and governments
Low fuel prices offer immediate relief to motorists, but they come at a cost to government budgets. Venezuela, for example, spends billions annually on subsidies, while Iran and Nigeria have faced pressure to reform their pricing systems as public finances come under strain. In many of these countries, cheap petrol is seen as an entitlement, making subsidy reforms politically sensitive.
For drivers in oil-rich nations, the combination of local production and subsidies means running costs remain far below those in Europe or Asia. In contrast, countries without domestic oil or with high fuel taxes see motorists paying up to $2.10 per litre, as in Hong Kong. The gap between the cheapest and most expensive markets is driven less by crude prices than by state policy on taxes and subsidies.
