In a recent assessment of Premium Motor Spirit (PMS) costs worldwide, Nigeria emerged as the 22nd country with the most economical fuel prices globally, according to a report released on January 1, 2024.
The global average petrol price, as outlined in the report titled “Gasoline Prices, Octane-95,” stands at $1.29 per litre. Nigeria, however, maintains an average petrol price of $0.722 (N660.25) as of January 8, 2024.
The report sheds light on the substantial variations in petrol prices influenced by diverse taxes and subsidies on fuel production within individual countries. It observes that richer nations generally exhibit higher prices, while economically advanced countries, such as the U.S., might have lower gas prices.
The disparities in prices are attributed to the different taxes and subsidies imposed by countries, despite having access to the same petroleum prices in international markets.
Iran claims the top position for providing the world’s most affordable gasoline at an exceptionally low $0.029 (equivalent to N26.52) per litre. In contrast, Hong Kong takes the lead with the highest recorded price of $3.101 (approximately N2,835.77) per litre.
Major oil-producing nations like Libya, Venezuela, Kuwait, and Saudi Arabia enjoy considerably low domestic fuel costs, highlighting the impact of their oil resources on local prices.
Notably, Nigeria’s current position at $0.722 (equivalent to N660.25) per litre underscores its commitment to providing affordable petrol. This is particularly significant as the subsidy on fuel prices was removed by President Bola Tinubu on May 29, 2023, resulting in a notable increase in the commodity’s price.
Despite facing challenges in meeting expected oil production, Nigeria maintains its status as Africa’s largest oil producer, contributing an average of 1.37 million barrels per day as reported in November 2023. The country’s resilience in maintaining affordable fuel costs solidifies its position in the global petrol market.
