According to global statistics these countries are the countries with the most affordable diesel prices in world, these prices reflect the oil policies and production advantages of these countries, where state-controlled systems and local oil reserves allow governments to keep fuel prices exceptionally low, benefiting citizens and industries alike. here is a comprehensive breakdown of the countries with the cheapest diesel prices and the reasons behind their low prices:
- Venezuela
- Price: $0.004/litre (₦6.94)
- Reason: Heavily subsidised by the government despite economic challenges. Venezuela’s state-owned oil company, PDVSA, ensures that fuel remains affordable for the population, despite significant economic issues.
- Iran
- Price: $0.006/litre (₦10.41)
- Reason: Government-controlled prices with large subsidies on oil products, aimed at reducing the burden on citizens despite sanctions and economic difficulties. Iran uses its vast oil reserves to maintain low domestic prices.
- Libya
- Price: $0.031/litre (₦53.85)
- Reason: Libya, an oil-rich country, provides low fuel prices through government subsidies, driven by its oil wealth and state-controlled oil sector.
- Algeria
- Price: $0.217/litre (₦376.60)
- Reason: Subsidies from the government and the country’s substantial oil reserves keep prices low. Algeria, as a member of OPEC, benefits from its ability to manage and control domestic fuel prices.
- Angola
- Price: $0.219/litre (₦379.10)
- Reason: Angola uses its oil resources to subsidise fuel costs. Despite facing economic challenges, the country’s vast oil reserves ensure that prices remain low for domestic use.
- Egypt
- Price: $0.272/litre (₦471.80)
- Reason: Subsidies continue to play a role, although Egypt has made efforts to reduce subsidies in recent years. The country relies on domestic oil production and government policies to manage fuel costs.
- Turkmenistan
- Price: $0.285/litre (₦494.98)
- Reason: State subsidies and significant natural gas resources allow Turkmenistan to keep fuel prices low. The government controls production and distribution, ensuring affordable prices for citizens.
- Saudi Arabia
- Price: $0.306/litre (₦531.70)
- Reason: Saudi Arabia, a leading oil producer, has kept domestic fuel prices low for decades. The country subsidises fuel prices as part of its policy to provide affordable energy to its population.
- Kuwait
- Price: $0.374/litre (₦648.50)
- Reason: Kuwait’s vast oil reserves and its role as an OPEC member allow it to provide cheap fuel to its citizens. Government subsidies and careful management of oil exports maintain these low prices.
- Ecuador
- Price: $0.475/litre (₦825.30)
- Reason: Ecuador, while not a major oil exporter, benefits from subsidies on domestic oil production, though these have been reduced in recent years due to fiscal pressures. The government uses its limited oil wealth to control domestic fuel pricing.
These countries are able to maintain low diesel prices largely due to a combination of large subsidies, significant domestic oil production, and government control over their energy sectors. However, these subsidies can place considerable strain on national budgets, especially in times of economic challenges or when global oil prices rise, this data is gotten mainly from globalpetroleumprice.com, and 1,660 Naira was the exchange rate used in time of writing.
