In this article, we are going to discuss the 5 countries with the cheapest gas prices. If you want to check out our detailed analysis of the global oil and gas market, the reason why gas is so cheap in the U.S., and the use of artificial intelligence in the oil and gas industry, head to 20 Countries with the Cheapest Gas Prices.
5. Kuwait
Price of Gas per Gallon: $1.286
Among Gulf states, gas prices remain the cheapest in Kuwait. The low price in Kuwait is due to the support provided by the government to all consumers, citizens and expatriates alike. According to figures, the country’s annual cost of fuel (gasoline – diesel) is about 976 million dinars ($3.15 billion), while the selling price is about 651 million ($2.1 billion), which means that the difference exceeds 300 million dinars ($1.05 billion). Given that the percentage of expatriates who have driving licenses constitutes about 55% of the total number of granted licenses in Kuwait, around half of the government’s fuel subsidy goes to support the expat consumption of gas.
Kuwait is a major oil producer and a member of the OPEC consortium. Oil accounts for nearly half of the country’s GDP, and around 95% of exports revenue.
4. Algeria
Price of Gas per Gallon: $1.267
Algeria imports very little energy as its domestic consumption is met by its own oil and natural gas production, which is heavily subsidized. Oil production accounts for nearly all of the North African country’s export economy, with 60% of Algeria’s entire production going towards exports.
Last year, Algeria completed work on a crude oil refining project in Hassi Messaoud, the largest oil city in the country, to pump 60,000 barrels per day.
3. Venezuela
Price of Gas per Gallon: $0.132
Venezuela is home to some of the largest oil reserves in the world. According to the 2022 BP Statistical Review of World Energy, Venezuela has more proved oil reserves than any other country. In addition to that, the government also heavily subsidizes gas prices in order to make it more affordable for the public. However, it must be mentioned that Venezuela is currently going through a severe economic crisis and the dirt-cheap gas prices are in no way indicative of a prosperous or stable economy.
2. Libya
Price of Gas per Gallon: $0.116
Libya has some of the cheapest fuel prices in the world. The gas price is determined by the National Oil Corporation and is heavily subsidized by the government. The price of Libyan gasoline is, in fact, even cheaper than water.
Libya is one of the top oil producers in Africa and exported around $27 billion of crude in 2021.
1. Iran
Price of Gas per Gallon: $0.108
For Iranians, cheap gasoline is practically considered a birthright, as their country holds the world’s fourth-largest crude oil reserves in the world. Heavy state subsidies have been keeping gas prices low, however, due to the widening gap between supply – which is limited by domestic refining capacity – and rising demand, the government has been forced to tap its strategic reserves and import petrol for the first time in a decade. The $0.108 price is paid for a monthly quota of around 16 gallons and roughly doubles for any amount beyond that threshold.
Iran is the Country with the Lowest Gas Prices in the World.
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