The world’s most expensive petrol – and the cheapest

Yet many countries have fuel prices that are significantly higher or lower than the global average of $1.33 per litre. Here’s a list of the 10 countries with the highest fuel prices per litre, quoted in US dollars, followed by the 10 countries with the lowest fuel prices. All data comes from GlobalPetrolPrices.com.

The prices are for 95-Octane fuel and were correct at the time of writing. We start with the 10 most expensive:

The reason for Norway’s high fuel cost is largely down to punitive taxes placed on fuel by the country’s government. These levies cover sales tax, road tax to maintain infrastructure, and a carbon tax.

This carbon tax charged as Norway’s government is keen to encourage drivers into zero tailpipe emissions electric vehicles. With four out of five new cars sold in Norway being an EV, it’s a tactic that’s working.

Barbados has risen up the ranks of the world’s most expensive countries for a litre of fuel and now heads the Caribbean league. As well as the cost of refining crude oil into petrol, there are local taxes that add to the price of a litre of fuel in Barbados. Subsidies paid out of fuel duty and the expense of transporting oil to the small island further contribute to its spot in this top 10.

However, unlike in many countries, all fuel stations in Barbados charge the same predetermined price per litre of fuel.

A large portion of the price of a litre of fuel in Israel is due to the hefty taxes applied by the country’s government. As well as a separate fuel tax, value-added-tax is charged and there’s another customs levy. While Israel is in the Middle East, its own stocks of oil are minimal, which means most of its fuel is now imported, further adding to the price of a litre of petrol.

This means Israel is more susceptible to fluctuating oil prices on the global market. All of Israel’s imported oil comes by sea, which is a more expensive method of importing it than by fixed pipeline, layering yet another cost on for drivers. Its main sources of oil are from Kazakhstan and Azerbaijan. 

Like most countries, the price of fuel surged in Switzerland in 2022 but took longer to realign afterwards than most other European nations. This led to many Swiss drivers crossing the border into France or Austria to fill up with cheaper fuel.

There is a duty-free area on the Swiss-Austrian border with cheaper fuel. However, most drivers are resigned to paying the higher price that includes a fuel tax, fuel tax surcharge, and import tax. Fuel in Switzerland is also affected by the cost of transporting it to the country on the River Rhine, which can be closed at short notice due to high water levels.

By no means the most expensive country in Europe for fuel, Lichtenstein still imposes quite a hit on your wallet for a litre of fuel. With no oil reserves of its own, every drop has to be imported and that comes by road into this tiny country to increase the cost of a litre considerably.

Liechtenstein’s government also takes a large slice of the cost from a litre of fuel through taxation.

The Danish government has long taken a stance that high tariffs on fuel will help discourage car use and reduce carbon emissions as a result. The policy has worked to an extent and there has been a steady drop in the number of new cars bought and the number of cars owned per household.

As part of this policy, VAT is charged at 25% on fuel in Denmark. There are also plans for an additional tax on diesel fuel from 2025 to steer drivers away from choosing this fuel for their next new car.

There was some respite for drivers in the Netherlands when the country’s government reduced fuel tax in the post-Covid period. However, there is now a plan to double the amount of tax levied on fuel by 2025.

Petrol station owners around the border of the country are facing serious problems as drivers simply drive over to fill up in Belgium and Germany, where fuel is markedly cheaper. The Dutch government is keen to persuade drivers to switch to EVs to help the country achieve its carbon emissions targets, hence the punitive taxes on fuel.

Iceland produces all of its own electricity through completely carbon-free methods, mostly using hydro-electric power and the remainder from geothermal production. However, it produces none of its own oil, so every last drop of petrol has to be imported there.

This explains a large chunk of the cost of a litre of fuel in Iceland, but the government also adds a considerable amount in tax. This is made up of fuel tax, road tax, excise duty, and VAT. The cost of fuel in Iceland varies a great deal between Reykjavik and more rural areas, with fuel costing up to 10% more in remote parts of the country.

Almost everything is expensive in Monaco and fuel is no exception. Given the principality’s history with its Grand Prix and how many famous racing drivers live there, it’s an irony not lost on the locals. Much of the high price of fuel in Monaco is due to it having to come in by road.

On top of this, the cost of property in Monaco means the few petrol stations there occupy prime real estate that comes with hefty charges. The rest of the cost of fuel in Monaco is linked to the price in France as the two states work as a customs union.

With space at such a premium in Hong Kong, car ownership is far lower than in most other parts of the developed world. As a result of this, and with no oil refinery capacity of its own, fuel is at its most expensive per litre in Hong Kong. Private car ownership is discouraged through high taxation of fuel and buying a car, and residents generally use Hong Kong’s excellent public transport. As a result, fuelling a car is a luxury few can afford or want to pay, with a third of the price of every litre going in taxes.

Filling up a car’s fuel tank will cost around twice as much in Hong Kong as the global average, which is compounded by the cost of setting up a fuel station on this crowded piece of land.

So that’s the most expensive – what about the least? Read on

Nigeria is a major oil producer, but almost all of its petrol is imported as the country has very limited refinery capacity. Despite this, fuel has been historically very cheap in Nigeria because the government has given drivers huge subsidies to keep the cost down.

Cheap fuel is taken for granted by most drivers in Nigeria and any attempt by the government to reduce subsidies and bring the price more into line with the true cost of supply has often met with large protests.

The government ended the subsidy in 2023 and prices jumped by 25%, though it was still very low by global standards. A new refinery opened in Nigeria in January 2024; when this comes up to full speed it will greatly increase domestic petrol production - and possibly reduce the cost of fuel.

Around three quarters of Malaysia’s oil is sold abroad, which means the country can afford to sell fuel to its citizens at a reduced price. This has been a longstanding arrangement, but it has led to some problems with fuel being smuggled out of Malaysia into neighbouring Indonesia where prices have risen dramatically in recent years.

As a consequence of this, the Malaysian government has just revised its subsidy on diesel fuel, increasing the cost by more than 50% to discourage the trade in smuggled fuel. There are also plans to apply the same drop in subsidies to petrol.

Among central Asian countries, Turkmenistan is second only to Iran for the low cost of its fuel per litre. Huge reserves of oil mean Turkmenistan is able to supply much of its own needs, though it produces far more natural gas than it does oil. All of the country’s petrol stations are state-owned.

Angola is the second largest oil producer in the whole of Africa behind Nigeria. However, the country has very little in the way of its own oil refineries, so most petrol is imported. To counter the cost of imported fuel, successive Angolan governments have provided fuel subsidies.

These are now being scrapped as of the country’s 2024 budget, which could see prices rise dramatically as market forces have more of an influence on the price of a litre of fuel. The Angolan government has said it plans to scrap all fuel subsidies by the end of 2025.

Of all the Middle East oil-producing countries, Kuwait has the lowest price per litre for petrol. This is due to the government’s policy of subsidising the price of fuel for its citizens from the profits it makes selling surplus oil to the rest of the world.

Until recently, petrol was so cheap in Kuwait that it cost less than a bottle of water, though that has now changed with a small increase in the price of fuel.

Like many of the countries with very low fuel prices, Algeria is a major producer of oil. This allows the country to service its own needs and earn income from selling surplus to other countries.

With the profits from its oil exports, the Algerian government keeps the price of domestic petrol supply low. This benefits car drivers, but it also means public transport in Algeria is very cheap to allow all of its citizens access to low-cost travel.

Second only to Libya on the African continent for how cheap its fuel price is per litre, Egypt’s low petrol prices are mostly down to government subsidies. This is enabled by Egypt being self-sufficient in crude oil and refining much of it for domestic use. As a result, and unlike many countries with oil reserves, Egypt has been much more successful in managing production.

The Egyptian government also applies an almost negligible amount of tax to every litre of fuel sold, which further helps to keep down the price.

This South American nation is reckoned to have the largest reserves of oil of any country in the world, and its state-owned oil producer invested in refinery facilities in the 1970s and 1980s. As a consequence, petrol costs a little more than three US cents per litre and filling up the average car costs less than a dollar.

However, corruption has taken its toll on Venezuela’s infrastructure, so even with such heavily subsidised fuel on offer it can be difficult for drivers to access it.

Libya is another country with very low petrol prices per litre thanks to its huge reserves of oil. Exporting this oil generates massive revenues and the Libyan government uses this to keep the prices of its domestic fuel very low.

Diesel is more expensive in Libya as it’s in higher demand to run generators as the electricity grid infrastructure is not comprehensive. As a result, diesel costs about 50% more than petrol in Libya.

Iran has vast reserves of oil and exports a great deal of it – most of it to China - yet it has recently been forced to import much of the petrol used in cars. The cost of this imported fuel is offset by the Iranian government so that a litre costs less than three US cents. That is much less than neighbouring oil-producing countries and when the Iranian government tried to raise the price and reduce subsidies there was a wave of violent protests.

There is also a widening gap in Iran between how much oil it can refine for domestic use and rising demand from drivers, which is putting further pressure on the government to reduce subsidies and bring the price of fuel more into line with how much it costs to bring to market. But for now at least, Iran has the cheapest fuel in the world.