Nigeria ranks 22nd for cheapest petrol worldwide – Report

Nigeria has been listed as the 22nd country with the most affordable fuel prices globally in a recent report comparing the costs of Premium Motor Spirit (PMS) worldwide.

According to the report dated January 1, 2024, titled “Gasoline Prices, Octane-95,” the average worldwide petrol price is $1.29 per litre.

Nigeria’s average petrol price stands at $0.722 (N660.25), as of January 8 2024.

The report also highlighted the substantial disparities in petrol prices influenced by the diverse taxes and subsidies on fuel production within individual countries.

“The average price of gasoline around the world is $1.29 per litre. However, there is a substantial difference in these prices among countries.

“As a general rule, richer countries have higher prices, while poorer countries and the countries that produce and export oil have significantly lower prices. One notable exception is the U.S., which is an economically advanced country but has low gas prices.

“The differences in prices across countries are due to the various taxes and subsidies for gasoline. 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 gasoline is different,” the report noted.

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Iran claims the top position for providing the world’s most inexpensive gasoline, priced at an exceptionally low $0.029 (equivalent to N26.52) per litre, while Hong Kong takes the lead with the highest recorded price of $3.101 (approximately N2,835.77) per litre.

Notably, major oil-producing nations such as Libya, Venezuela, Kuwait, and Saudi Arabia enjoy considerably low domestic fuel costs.

High fuel tax imposition is evident in countries like Hong Kong, where the price is $3.101 (approximately N2,835.77) per litre, and in European nations such as Monaco and Norway, contributing to consistently rising petrol prices.

Nigeria Ranking

Within this context, Nigeria is situated at $0.722 (equivalent to N660.25) per litre, showcasing its status among nations providing affordable petrol.

It is noteworthy that the subsidy on the pump price of fuel was removed by President Bola Tinubu on May 29, 2023, resulting in a dramatic increase in the price of the commodity.

Meanwhile, Nigeria still maintains its position as one of the countries with the most inexpensive fuel cost in comparison with other countries.

In addition, Nigeria, despite facing challenges in meeting expected oil production, continues to hold the top spot as Africa’s largest oil producer, contributing an average of 1.37 million barrels per day as reported in November 2023.