Gasoline prices were severely disrupted last year when Russia invaded Ukraine. The cost of gasoline in the US soared, reaching an all-time high of $5.02 per gallon on June 14, 2022. While prices in the United States decreased almost 4% compared to a year ago, people may think that the prices are still high, and, relatively speaking, they are. However, there are a large majority of countries around the world that have very expensive fuel.
Only about three dozen countries have cheaper gasoline than the United States. Using data from globalpetrolprices.com, these are the ten countries with the cheapest gasoline per gallon in the US as of October 29, 2023.
Why do these countries have such cheap fuel?
The most important factor influencing gas prices in the world is the price of crude oil, the main raw material. Changes in global oil supply and demand, geopolitical tensions, production disruptions, and OPEC (Organization of the Petroleum Exporting Countries) decisions affect the price of crude oil, which in turn affects the price of crude oil. OPEC recently reached an agreement to curb oil production, which was linked to the rise in gas prices last month.
Why are Iran, Libya, and Venezuela the countries with the cheapest fuel?
For one thing, all these countries have large oil reserves. In addition to this, the three cheapest countries, Venezuela, Libya, and Iran, have difficulties exporting their products through war or sanctions imposed by the United States. This means that more fuel is available for public consumption and not for export. These countries also heavily subsidize domestic fuel prices, meaning the government provides financial support to lower fuel prices for consumers.