Top 10 Countries in the World with the Cheapest Fuel: 2026 Rankings

As the global average price of gasoline settles at approximately $1.29 per litre, fuel costs continue to vary sharply across countries. These differences are driven less by the international price of crude oil and more by domestic policy choices, particularly taxation, subsidies and market regulation.

According to Global Petrol Prices, all countries purchase crude oil at broadly similar international prices. However, once national taxes and subsidies are applied, retail fuel prices diverge significantly.

Wealthier economies tend to impose higher fuel taxes to fund infrastructure and support environmental goals, pushing prices upwards. In contrast, many poorer and oil-producing countries keep fuel prices deliberately low to ease cost-of-living pressures or distribute the benefits of natural resource wealth.

As of 19 January 2026, motorists in some countries are paying only a fraction of the global average. The lowest prices are concentrated in a small group of oil-rich states with long-standing government intervention in fuel markets.

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Libya ranks as the country with the cheapest gasoline in the world. Supported by vast crude oil reserves, the North African nation has maintained heavy fuel subsidies for decades, keeping pump prices at just a few cents per litre. While this provides short-term affordability for consumers, it has also contributed to fiscal strain and widespread fuel smuggling.

Iran follows closely, with gasoline prices kept among the lowest globally through extensive government subsidies and price controls. Fuel affordability remains politically sensitive, leading authorities to sustain low prices despite budgetary pressures and international sanctions.

Venezuela ranks third, underpinned by some of the world’s largest proven oil reserves. The country has long maintained extremely low domestic fuel prices through large-scale subsidies, even as broader economic conditions have deteriorated.

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Beyond the top three, Africa features prominently in the wider low-price rankings. Countries such as Angola, Algeria, Egypt and Nigeria continue to record gasoline prices well below the global average. These low prices are supported by domestic oil production, regulated pricing systems or targeted subsidies, reinforcing Africa’s position as one of the world’s most affordable regions for fuel.

Low fuel prices can offer clear economic advantages. Cheaper gasoline reduces transportation costs, helps contain inflation and lowers operating expenses for businesses. For households, affordable fuel can ease pressure on disposable income.

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However, sustaining low fuel prices often places heavy strain on public finances. Subsidies can divert resources from healthcare, education and infrastructure, while artificially cheap fuel may discourage energy efficiency and delay the transition to cleaner energy sources.

The 2026 rankings highlight how fuel affordability is shaped more by political priorities than by global oil markets. As governments grapple with volatile energy prices, the challenge remains balancing affordability with fiscal sustainability and long-term energy reform.

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