Libya has retained its position as the cheapest country in the world to buy petrol, with motorists paying the equivalent of just $0.024 per litre, according to the latest global fuel price rankings published by globalpetrolprices.com.
The latest ranking reveals that countries with vast crude oil reserves, strong state intervention and extensive fuel subsidies continue to dominate the list. However, low petrol prices do not necessarily mean strong refining industries, as some nations still depend heavily on imports.
Below are the 10 countries with the cheapest petrol prices and the factors driving their low costs.
1. Libya — $0.024 per litre
Why is it so cheap?
Libya operates one of the world's most heavily subsidised fuel systems. The government imports a significant portion of its fuel requirements and sells them domestically at a substantial loss using crude oil export revenues.
Although Libya has a nominal refining capacity of about 380,000 barrels per day (bpd), operational challenges have reduced actual output to around 180,000 bpd. The country's largest refinery, the 220,000 bpd Ras Lanuf refinery, has remained shut since 2013 due to disputes and infrastructure issues.
Most domestic production currently comes from the 120,000 bpd Zawiya refinery, while smaller refineries support supply. The supply gap is filled through imports, costing the country billions of dollars annually.
Libya plans to increase refining capacity to 660,000 bpd, but it does not expect to achieve fuel self-sufficiency until 2037.
2. Iran — $0.029 per litre
Why is it so cheap?
Iran operates a tiered subsidy system. Motorists receive subsidised fuel allocations of up to 60 litres monthly, after which prices double. Despite years of US sanctions, Iran refines most of its crude domestically.
The country has installed refining capacity of roughly 2.4 million bpd, led by major refineries such as Abadan, Isfahan, Tehran and Bandar Abbas.
Heavy state subsidies, domestic refining and energy self-sufficiency allow Iran to maintain some of the lowest fuel prices globally.
3. Venezuela — $0.035 per litre
Why is it so cheap?
Venezuela's petrol prices are among the lowest globally due to aggressive state subsidies, but the official price masks severe structural problems.
The country possesses refining capacity of about 1.3 million bpd, but years of sanctions, underinvestment, blackouts and operational failures have reduced utilisation to roughly 35% of capacity.
Subsidised prices mainly apply to citizens holding the government's "Fatherland Card", while additional purchases are sold at much higher prices.
The country also imports blending components and refined products to sustain local supply.
4. Angola — $0.327 per litre
Why is it so cheap?
Angola still maintains substantial fuel subsidies despite ongoing reforms.
State-owned oil company Sonangol has historically spent around $2 billion annually supporting fuel prices.
The country currently operates the 65,000 bpd Luanda refinery and recently commissioned the 60,000 bpd Cabinda refinery.
Additional projects, including the 200,000 bpd Lobito refinery and the 100,000 bpd Soyo refinery, aim to reduce import dependence and gradually phase out costly subsidies.
5. Kuwait — $0.34 per litre
Why is it so cheap?
Kuwait uses a government-managed pricing model rather than extreme subsidies.
Prices are reviewed periodically by a state committee but remain relatively stable due to the country's strong domestic refining and export capacity.
The government balances affordability with fiscal sustainability while leveraging its vast oil wealth.
6. Algeria — $0.35 per litre
Why is it so cheap?
Algeria maintains one of Africa's longest-running fuel subsidy programmes.
Petrol and diesel prices have largely remained frozen for years and do not directly track global oil prices.
The government compensates state oil company Sonatrach through direct and indirect fiscal support, including tax waivers and revenue transfers.
The downside has been persistent fuel smuggling into neighbouring countries.
7. Turkmenistan — $0.43 per litre
Why is it so cheap?
Turkmenistan benefits from abundant natural gas and hydrocarbon resources.
The government maintains controlled fuel prices through state intervention, although subsidies are less extensive than those seen in Libya or Iran.
Domestic refining supports local demand, but the country has gradually moved away from blanket subsidies in recent years.
8. Egypt — $0.46 per litre
Why is it so cheap?
Egypt is transitioning away from subsidies. Over the past decade, the government has aggressively reduced fuel support under an IMF-backed reform programme.
Despite significant price increases, fuel remains relatively affordable due to government intervention and domestic refining capacity.
The government continues to protect consumers through partial subsidies while pursuing fiscal reforms.
9. Qatar — $0.58 per litre
Why is it so cheap?
Qatar uses a partial market-based pricing system. The government reviews prices regularly while leveraging its substantial oil and natural gas revenues to keep fuel affordable.
Domestic refining and relatively low population levels also reduce pressure on supply chains.
10. Saudi Arabia — $0.62 per litre
Why is it so cheap?
Saudi Arabia combines massive domestic oil production with extensive refining infrastructure.
Fuel prices are no longer heavily subsidised as they once were, but the government still maintains a controlled pricing mechanism through Saudi Aramco.
Its integrated oil and refining system allows the kingdom to supply domestic demand efficiently while remaining a major exporter of refined products.
The report reveals that cheap petrol is no longer solely about being an oil producer. Countries with the lowest prices typically combine one or more of these factors:
Heavy government subsidies funded by oil export revenues.
Large domestic refining capacity
State-controlled pricing systems.
Strategic energy security policies.
Partial or complete insulation from global oil price volatility.
Conversely, countries that have begun removing subsidies, such as Egypt and Angola, are gradually moving towards market-based pricing to reduce fiscal burdens.