Do Kenyans Have Option for Affordable Fuel? Here's List of Countries With Cheapest Fuel Globally

Several major oil-producing countries, including Libya, Venezuela, Kuwait, and Saudi Arabia, benefit from very low domestic fuel costs.

Among these countries, Iran tops the list with the lowest fuel price at just $0.029 per liter, followed closely by Libya at $0.031 and Venezuela at $0.035.

According to The Business Research Company, the global oil and gas market was valued at $6.99 trillion in 2022 and is projected to grow to $8.67 trillion by 2027, with a compound annual growth rate (CAGR) of 4.4% during this period.

Fuel Prices Across Key Oil Producers

Kuwait

Among the Gulf states, Kuwait boasts some of the cheapest gas prices, supported by government subsidies for all consumers, including both citizens and expatriates. The price of fuel per liter in Kuwait stands at $1.286.

Algeria

In Algeria, the price of gas per gallon is $1.267. The country imports very little energy as its domestic consumption is met by its own heavily subsidized oil and natural gas production.

Oil production is crucial to Algeria’s economy, with 60% of its production earmarked for exports. In 2022, Algeria completed a crude oil refining project in Hassi Messaoud, the largest oil city in the country, increasing its capacity by 60,000 barrels per day.

Also Read: Did Murkomen Lie? Fuel Price Reductions Overshadowed by Road Maintenance Levy Increase in Kenya

Venezuela

Venezuela, home to some of the largest oil reserves in the world, offers gas at a mere $0.132 per gallon. The government heavily subsidizes fuel prices to ensure affordability for the public. According to the 2022 BP Statistical Review of World Energy, Venezuela has the highest proved oil reserves globally.

Libya

In Libya, the price of gas per gallon is $0.116, making it one of the cheapest in the world. The National Oil Corporation, with substantial government subsidies, sets the gas prices. In 2021, Libya exported approximately $27 billion worth of crude oil, highlighting its status as one of Africa’s top oil producers.

Saudi Arabia

Kenya imports fuel from Saudi Arabia – from the country’s largest oil company, Saudi Aramco.

Saudi Aramco boasted a massive revenue of $535.2 billion in 2022, up 49% from 2021.

The Middle Eastern Country was the second-largest oil producer in the world last year, with a share of 13.2% in the global crude oil production.

It’s important to note that Saudi Arabia is placed at position 18 among top 20 countries globally with cheapest fuel – according to Insider Monkey.

Its price per litre of fuel goes for $2.351.

Global Oil Market Outlook

The global oil and gas market is on a growth trajectory, driven by increasing demand and strategic developments within the sector.

For 2024 as a whole, global oil supply growth is forecast to average 770  thousand barrels per day (kb/d), which will boost oil supply to a record 103 million barrels per day (mb/d) – according to International Energy Agency (IEA).

Non-OPEC+ output is expected to rise by 1.5 mb/d, while OPEC+ production will fall by 740 kb/d year-on-year if existing voluntary cuts are maintained.

As countries like Libya, Venezuela, Kuwait, and Iran continue to offer low domestic fuel prices, the dynamics of the global oil market remain closely tied to the policies and economic strategies of these key producers.