In 2024, several countries with vast oil reserves and significant government subsidies continue to offer some of the lowest cooking gas prices globally. These nations, blessed with abundant natural resources, maintain fuel prices well below international market averages due to state policies that cushion consumers and capitalise on domestic production capabilities. However, the sustainability of these prices remains uncertain, with global market forces and local economic challenges mounting pressure on these governments.
Below are the ten countries currently offering the most affordable cooking gas, with prices converted into Naira per kilogram, based on the current exchange rate of ₦1,666 to $1.
1. Libya – ₦90.87 per kg
Libya tops the list with gas prices at just $0.12 per gallon, which translates to ₦199.92 per gallon, or ₦90.87 per kg. Despite political instability and internal conflict, the Libyan government continues to subsidise fuel prices, ensuring that citizens benefit from the country’s vast oil wealth.
2. Venezuela – ₦98.45 per kg
Venezuela, once a wealthy oil producer, still offers some of the world’s cheapest cooking gas, priced at $0.13 per gallon. This converts to ₦216.58 per gallon, or ₦98.45 per kg. However, the country’s deep economic crisis and hyperinflation mean that these low prices are largely symbolic, as many basic goods remain out of reach for the average citizen.
3. Iran – ₦151.45 per kg
Iran offers cooking gas at $0.20 per gallon, or ₦333.20 per gallon, which equals ₦151.45 per kg. Long-standing subsidies dating back to the 1979 revolution have helped keep fuel prices extremely low, but the sustainability of these prices is increasingly questionable due to sanctions and economic challenges.
4. Algeria – ₦962.19 per kg
Algeria prices gas at $1.27 per gallon, translating to ₦2,116.82 per gallon, or ₦962.19 per kg. The country has long subsidised fuel as a way to maintain social stability, but fiscal strain is growing, raising questions about how much longer these subsidies can be sustained.
5. Kuwait – ₦968.85 per kg
Kuwait, one of the world’s leading oil producers, offers gas at $1.28 per gallon, which equals ₦2,131.48 per gallon, or ₦968.85 per kg. While the government’s vast oil revenues allow it to subsidise fuel, there is growing pressure to diversify the economy and reduce reliance on hydrocarbons.
6. Angola – ₦1,036.10 per kg
Angola, Africa’s second-largest oil producer, prices gas at $1.37 per gallon. This translates to ₦2,279.42 per gallon, or ₦1,036.10 per kg. Despite its large oil production, Angola’s economy is susceptible to fluctuations in global oil prices, which could impact its ability to maintain these low fuel prices.
7. Egypt – ₦1,067.75 per kg
Egypt offers gas at $1.41 per gallon, converting to ₦2,349.06 per gallon, or ₦1,067.75 per kg. While the Egyptian government continues to subsidise fuel, it has been gradually reducing these subsidies in recent years under pressure from international financial institutions, meaning that these low prices may not be permanent.
8. Turkmenistan – ₦1,234.81 per kg
In Turkmenistan, gas prices stand at $1.63 per gallon, or ₦2,716.58 per gallon, which equates to ₦1,234.81 per kg. The country’s vast gas reserves allow the government to maintain low domestic fuel prices through subsidies, although the financial strain of these subsidies could become a burden over time.
9. Kazakhstan – ₦1,295.39 per kg
Kazakhstan offers gas at $1.71 per gallon, which translates to ₦2,849.86 per gallon, or ₦1,295.39 per kg. The country, rich in natural resources, has long subsidised fuel prices, but the need for economic reforms and the pressure to reduce reliance on fossil fuels may affect the future of these subsidies.
10. Malaysia – ₦1,309.63 per kg
Rounding out the list is Malaysia, where gas is priced at $1.73 per gallon, converting to ₦2,881.18 per gallon, or ₦1,309.63 per kg. The Malaysian government has successfully balanced subsidies with fiscal responsibility, but as the global energy transition accelerates, the future of fuel subsidies is increasingly uncertain.
Sustainability Concerns
Although these countries maintain exceptionally low gas prices through subsidies and domestic production, the longevity of these low prices is under threat. Global oil prices are volatile, and many governments are facing growing fiscal pressures to reduce fuel subsidies to stabilise their budgets.
Countries like Venezuela and Iran face the dual challenge of economic sanctions and domestic unrest, making it difficult to sustain low fuel prices without risking broader economic instability. Wealthier nations like Kuwait and Malaysia may have more flexibility, but even they face pressure to transition away from oil dependency as the world moves toward greener energy solutions.
Ultimately, while consumers in these nations may benefit from low gas prices in 2024, the future is uncertain. Without significant reforms or a shift in global market conditions, many of these countries may be forced to rethink their heavily subsidised fuel models in the years to come.
