Nigeria ranks 22nd cheapest oil selling country globally

A recent report titled ‘Global Petrol Prices, Octane-95, January 1, 2024′ has listed the substantial discrepancies in gasoline prices worldwide, positioning Nigeria as the 22nd country with the most affordable petrol on a global scale.

The report, accessible on their website, highlights the average global gasoline price at 1.29 US dollars per litre, drawing attention to the significant variations influenced by individual countries’ diverse taxes and subsidies.

“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”. The report is a product of survey of prices of petrol in more than 150 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.

Iran secures the top spot for offering the world’s cheapest gasoline at a remarkably low $0.029 (equivalent to N26.52) per litre, while Hong Kong leads with the highest price recorded at $3.101 (approximately N2,835.77) per litre.

Countries imposing high fuel taxes, like Hong Kong at $3.101 (about N2,835.77) per litre, and European nations like Monaco and Norway, exhibit consistently higher petrol prices.

According to the document, Nigeria sold the product for $0.722 per litre, which was N648.93 at Nigerian exchange rate to the dollar.

Other notable prices mentioned include the United States at $0.911 (around N833.08), Brazil at $1.150 (approximately N1,051.64), and India at $1.252 (equivalent to N1,144.92).

Despite Nigeria facing challenges in meeting anticipated oil production levels, it maintains its position as Africa’s largest oil producer, contributing an average of 1.37 million barrels per day as of November 2023.