The high cost of petrol in oil-producing countries is the result of a combination of market forces, policies, and economic factors. This elevated cost of petrol, or Premium Motor Spirit (PMS), can be attributed to a range of economic, political, and structural factors that differ significantly from one country to another. Each nation’s situation is unique, shaped by its governance, infrastructure, and resource management strategies.
According to the December 2024 Gasoline Price Report published by Global Petrol Prices, the global average price of petrol during this period was $1.24 per litre.
Disparity in Global PMS Prices
However, substantial variations were noted across countries, largely due to differences in taxes and levies.
The report further explained that these price discrepancies are driven by the varying levels of taxes and subsidies imposed on gasoline in different regions.
“All countries have access to the same petroleum prices from international markets but then decide to impose different taxes. As a result, the retail price of gasoline is different.”
“As a general rule, richer countries have higher prices, while poorer countries and those that produce and export oil have significantly lower prices. One notable exception is the US, which, although economically advanced, has low gas prices,” the report stated.
As observed in the report, the top oil-producing countries in Africa also showed significant differences in petrol prices, with some nations experiencing high costs, while others recorded lower petrol prices.
According to the data, the table below illustrates the varying petrol prices in different oil-producing African nations:
Libya had the lowest petrol price on the continent at $0.031 per litre, ranking second globally. Angola followed closely at $0.329 per litre, Egypt at $0.335 per litre, Algeria at $0.343 per litre, Sudan at $0.700 per litre, and Ethiopia at $0.718 per litre.
The data also revealed that Ghana had the highest price at $1.95 per litre, followed by Gabon at $0.952, while Nigeria’s price was $0.768 as of December 16, 2024.
Following a recent partnership between the Nigerian National Petroleum Company Limited (NNPCL), Dangote Refinery, and petroleum marketers, the price of fuel in Nigeria has been lowered to between N935 and N965 per litre, which is roughly equivalent to $0.6 per litre.
