Petroleum Products Supply Imbalance Hurts Pricing Mechanism – Report

The current pump price of Premium Motor Spirit (PMS) in Nigeria which swings at between N1,000 and in some areas N980 per litre reflects challenges the country currently faces in balancing domestic supply and demand on one hand.

According to a report by GlobalPetrolPrices.com, Nigeria, Africa’s largest oil producer, offers fuel at $0.769 per litre.

Despite being one of the continent’s top oil exporters, the country’s fuel prices are impacted by fluctuating global oil prices, governmental policies, and the local economy.

While the price is relatively low by international standards, it reflects the challenges Nigeria faces in balancing domestic supply and demand.

Nigeria Ranks 6th African Country With Cheap Fuel Prices

The report shows that fuel prices across Africa in 2025 reflect a diverse energy environment influenced by local production, subsidies, and imports.

Countries like Libya and Angola, with abundant oil reserves, maintain low fuel prices, while nations such as Ethiopia and Liberia, which depend on imports, face higher costs.

As global oil prices fluctuate, these nations have to navigate challenges such as subsidies and production levels to ensure affordable fuel for their populations.

The report further points to the top 10 African countries with the cheapest fuel at the start of 2025.

The report analysed price trends in other countries especially in Africa, showing that key crude producing countries enjoy relatively low prices of petroleum products.

In Tunisia, fuel is priced at $0.794 per litre. The country has limited domestic oil production but benefits from access to regional markets and government subsidies that help control fuel prices. However, economic pressures mean that prices may fluctuate over time.

Ethiopia, with a price of $0.805 per litre, ranks eighth on this list.

While the country is not a major oil producer, it imports most of its fuel, but government efforts to stabilise prices help keep costs low for consumers.

It reports that Liberia’s fuel price is $0.829 per litre as the country relies on imports to meet its fuel needs, and while domestic production is limited, low prices are maintained through government policy and external trade agreements.

Gabon, with a price of $0.944 per litre, rounds out the top 10.

As an oil producer with significant reserves, Gabon benefits from relatively low fuel costs compared to other countries on the continent.  However, fuel prices are still higher than those in nations with larger oil production capacities.

Libya remains the leader in the African fuel price rankings, with a litre of fuel costing $0.030. This low price is largely due to the country’s rich oil reserves, which make up a significant portion of its economy.

Angola follows closely with a price of $0.328 per litre. As one of Africa’s top oil producers, Angola has a large share of the global oil market. The country’s reliance on oil exports helps maintain relatively low domestic fuel prices, providing an economic advantage for its citizens.

Egypt is another country where fuel remains affordable, priced at $0.336 per litre. The country has seen substantial investment in its oil and gas sector in recent years, and the government provides subsidies to maintain lower fuel prices for the public.

Fuel in Algeria costs $0.339 per litre. The country’s vast oil and gas resources contribute to these low prices, and the government continues to subsidise fuel costs, which helps support local economic stability.

Sudan’s fuel price is $0.700 per litre, which is still quite low compared to global standards. While Sudan faces economic challenges, it benefits from domestic oil production, though it has struggled with fluctuations in oil output and the impact of external factors on fuel prices.