Oil Producing Countries Enjoy Low Domestic fuel Prices – Report

Most oil-producing countries, including Nigeria, Libya, Venezuela, Kuwait, and Saudi Arabia, enjoy very low domestic fuel costs, a new report has revealed, indicating that taxes and subsidies are major considerations.

According to the report, Iran tops the list at $0.029 (N26.52), followed by Libya at $0.031 (N28.35) and Venezuela at $0.035 (N32.01).

At the other end of the spectrum are cities and countries with high taxes on fuel. Hong Kong tops the ranking with gasoline at $3.101 (N2,835.77) per litre. Prices in Europe are consistently higher, with drivers in Monaco paying $2.353 (N2,151.75) and those in Norway paying $2.052 (N1,876.49).

Among other sample countries, the United States came in at $0.911 (N833.08) per litre, putting it near the global average of $1.30 (N1,188.81).

Nigeria stands at $0.722 (N660.25), Brazil at $1.150 (N1,051.64), and India at $1.252 (N1,144.92).

The report revealed vast differences in gasoline costs across the world, with Nigeria ranking 22nd in the cheapest petrol price category globally.

The report titled ‘Global Petrol Prices, Octane-95, January 1, 2024’, as posted on their website, also revealed some countries paying over 100 times more for petrol.

“The average price of gasoline around the world is 1.29 US Dollars 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 said.

According to data compiled by Global Petrol Prices and presented on a chart in the report, as of January 2024, Iran has the world’s cheapest gasoline at just $0.029 (N26.52) per litre, while Hong Kong has the highest price at $3.101 (N2,835.77) per litre.

According to data from the Organisation of Petroleum Exporting Countries(OPEC), Nigeria has struggled to meet its expected oil production levels in recent months.

As of November 2023, Nigeria remained Africa’s largest oil producer, churning out 1.37 million barrels per day, according to secondary sources tracked by OPEC.

However, Nigeria’s self-reported production figures directly to OPEC for November showed output of only 1.25 million barrels per day.

“According to secondary sources, total OPEC-13 crude oil production averaged 27.84mb/d in November 2023, lower by 57 tb/d, m-o-m. Crude oil output increased mainly in Venezuela, Libya, and Kuwait, while production in Iraq, Angola, and Nigeria decreased,” OPEC said in its December 2023 report.

Some of the countries listed and their prices, according to Global Petrol Prices, Octane-95, January 1, 2024, are Iran: $0.029, Libya: $0.031, Venezuela: $0.035, Kuwait: $0.342, Algeria: $0.342 and Egypt: $0.403.

Others are Kazakhstan: $0.534, Russia: $0.617, Saudi Arabia: $0.621, Nigeria: $0.722
UAE: $0.738, Argentina: $0.818, Indonesia: $0.874, USA: $0.911, Pakistan: $0.958
Bangladesh: $1.136, China: $1.146, Brazil: $1.150, Turkey: $1.169, Australia: $1.173 and South Korea: $1.203.

The rest are South Africa: $1.205, Canada: $1.239, Japan: $1.242, India: $1.252, Ukraine: $1.410, Mexico: $1.423, Chile: $1.441, Czechia: $1.607, Spain: $1.688, UK: $1.801, Germany: $1.910, Italy: $1.954, France: $1.968, Finland: $1.980, Switzerland: $2.028, Norway: $2.052, Netherlands: $2.085, Denmark: $2.114, Monaco: $2.353 and Hong Kong: $3.101.