Nigeria Ranks on List of Countries With Cheapest Petrol Amid N660/Litre Price

• The global petrol price index has revealed the position of Nigeria on the list of countries with the cheapest petrol price
• Contrary to popular belief, it turns out that the price of petrol in Nigeria is one of the cheapest in the world
• According to the report, Iran, Libya and Venezuela are the countries where the product is sold for the lowest prices

Legit.ng journalist Victor Enengedi has over a decade of experience covering Energy, MSMEs, Technology and the stock market.

A recent report has unveiled significant variations in gasoline expenses worldwide, positioning Nigeria at 22nd place in the global ranking for the most economical petrol prices.

This follows a recent increase in the pump price of petrol in Nigeria since President Bola Tinubu announced the removal of fuel subsidy.

Read also

CBN issues strong warning to Forex defaulters as it clears backlogs in 14 banks, others

The report, titled 'Global Petrol Prices, Octane-95, January 1, 2024,' and available on their official website, also highlights instances where certain countries pay over 100 times more for petrol.

The global average for gasoline stands at 1.29 US Dollars per litre; however, there exists a considerable disparity in these prices among different nations.

Generally, wealthier nations tend to experience higher petrol prices, while economically disadvantaged countries and those involved in oil production and exportation typically enjoy significantly lower prices.

Discrepancies in gasoline prices among nations arise from the diverse taxation and subsidy policies in place.

While all countries have access to identical international petroleum prices, they opt to apply distinct taxes. Consequently, the retail price of gasoline varies accordingly.

Iran, Libya top list of countries for cheapest petrol

Read also

Dangote, 6 other African billionaires wealthier than 700 million people in Africa - report

As of January 2024, data compiled by Global Petrol Prices and presented in a report indicates that Iran boasts the world's most economical gasoline, priced at just $0.029 (N26.52) per litre, while Hong Kong holds the top spot for the highest price at $3.101 (N2,835.77) per litre.

Notably, several major oil-producing nations, such as Libya, Venezuela, Kuwait, and Saudi Arabia, benefit from remarkably low domestic fuel costs. Iran leads with $0.029 (N26.52), followed by Libya at $0.031 (N28.35) and Venezuela at $0.035 (N32.01).

Conversely, locations with high fuel taxes, like Hong Kong, command the upper echelon with gasoline priced at $3.101 (N2,835.77) per litre.

In Europe, prices consistently lean towards the higher side, with Monaco at $2.353 (N2,151.75) and Norway at $2.052 (N1,876.49).

Other noteworthy figures include the United States at $0.911 (N833.08) per litre, placing it close to the global average of $1.30 (N1,188.81).

Read also

Elon Musk, 4 other world’s richest men make $14M every hour, grow wealth 3x faster in 3yrs

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

Nigeria not meeting OPEC production quota

Based on information obtained from the Organisation of Petroleum Exporting Countries (OPEC), Nigeria has encountered challenges meeting its projected oil production targets over the past few months.

As of November 2023, Nigeria maintained its position as Africa's primary oil producer, generating 1.37 million barrels daily, as indicated by secondary sources monitored by OPEC.

However, the production figures self-reported by Nigeria directly to OPEC for November revealed a reduced output of only 1.25 million barrels per day.

The following table provides a compilation of the top 25 countries along with their corresponding prices for petrol, as reported by Global Petrol Prices on January 1, 2024.

Read also

Despite cash scarcity, CBN says currency in circulation is N3.35 trillion

Note: On the graph, the prices for the countries indicated with a * are updated on a weekly basis. The prices for the other countries are updated on a monthly basis because these countries have regulated fuel markets and prices do not change frequently.

Nigeria's inability to refine it's crude oil

Commenting on Nigeria's position on the list, Wale Ogundeji, an Energy analyst, told Legit.ng that the country would have ranked higher if not for some factors.

He said the country's status as a major oil producer should have normally contributed to the availability of petroleum products, but unfortunately, that is not the case at present.

He said:

"Even though Nigeria ranks in the 22nd position in the world, it ought to rank higher if not for the factors that have been bedevilling the oil and gas sector in Nigeria for decades.

"The fact that Nigeria is unable to refine its crude oil and relies greatly on refined products imported from other countries significantly leads to higher prices for petrol.

Read also

New report ranks Nigeria among 10 African countries with cheapest petrol prices in 2024

"These high prices are now more than ever, obvious since the present administration removed subsidy on petrol in May 2023."

Ogundeji, however, noted that fuel prices can be subject to fluctuations, and economic and geopolitical changes can impact these rankings over time.

Oil marketers propose how FG can reduce petrol cost by N49 per litre for Nigerians

Meanwhile, Legit.ng reported that oil marketers propose that the incorporation of ethanol into petrol could considerably reduce the price, potentially decreasing it by N49 per litre.

This proposal stems from the scarcity challenges and the resurgence of prolonged queues in different parts of the country.

Interestingly, this suggestion aligns with the concerns voiced by oil marketers about a possible upswing in fuel prices reaching N800 per litre in the upcoming weeks.

They attribute this anticipated hike to the escalating landing cost, a pivotal factor influencing the potential increase.

Source: Legit.ng