Again we came up with a fascinating question that crossed the mind: "Which African countries have the lowest fuel prices?" The answer might surprise you, so buckle up and embark on this journey through the African continent, as we delve into the world of fuel economics. The importance of low oil prices cannot be ignored, especially in developing countries such as many African countries. Low oil prices affect the country's economy in many ways. They keep the business running smoothly while supporting and disrupting the business and customers. Lowering fuel prices could help solve this problem by making transportation more affordable, especially for low-income and rural communities. Opportunities to support poor communities and help alleviate hardship. The data were retrieved from the Global Petrole Price.
In many African countries, high transportation costs can increase poverty by limiting access to goods and services, including food, health, sanitation, and education. Lowering fuel prices could help solve this problem by making transportation more affordable, especially for low-income and rural communities. Opportunities to support poor communities and help alleviate hardship. Additionally, industries that rely heavily on transportation, such as manufacturing, shipping, and agriculture, will face higher costs. This could lead to reduced income, especially in electricity-reliant regions.
Here are the top 10 African countries with the lowest fuel prices, based on average prices per liter
1 Libya: Libyan oil prices rank second in the world and first in Africa at $0.031 per liter. Oil prices are lower in Libya than in many other countries for the following reasons: Large oil reserves: Libya has large oil reserves, which allows the government to finance and keep fuel prices low. These subsidies are financed by revenues from oil exports. The Libyan government remains stable and domestic oil prices are low. However, it is worth noting that this situation may change depending on the international oil market, geopolitical events, and domestic markets.
2 Egypt: Egypt ranked number 2nd in Africa and 4th on global rank where at 1-liter Egyptian pay $0.281. The Egyptian government supports higher oil prices, which means consumers pay less for production and delivery costs. The purpose of these subsidies is to solve the financial problems of the people and support various industries based on cheap oil.
3 Algeria: Algeria is number 3 on the list and 6th Globally with the cheapest fuel at 1 liter an Algerian has $0.342. Algeria is a major oil-producing country with significant reserves. This allows the government to keep fuel prices lower due to easier access to domestic oil production. Fuel is considered a strategic commodity in Algeria, essential for transportation, industry, and agriculture. Keeping fuel prices affordable is a priority to support economic activities and maintain social stability.
4 Angola: Angola is the number 4 country with the lowest price in Africa and 8th on Global rank The people of Angola pay $0.359 per liter. Angola is a country member of the Organization of Petroleum Export (OPE). it can produce 1.1 Billion barrels per day which signifies why Angola's economy relies heavily on the oil sector, and affordable fuel prices can benefit various industries, including transportation, logistics, and manufacturing.
5. Nigeria: Nigeria is number 5 country with the lowest fuel price and 13th on global Rank. The Nigerians have to pay $0.549 per liter. the combination of abundant oil reserves, government subsidies, strategic importance of fuel, economic considerations, and domestic consumption patterns contributes to the affordability of fuel in Nigeria.
6 Sudan: Sudan is the number 6 country in Africa with the lowest price of fuel and ranked 20th Globally. Sudanese people pay $0.700 per liter. Government policies and stability can influence fuel prices. In Sudan, government interventions, including subsidies and pricing regulations, play a significant role in determining fuel prices.
7. Tunisia: Tunisia is the number 7 country with the lowest fuel price in Africa and 22nd on the global list with $0.800 per Liter. The Tunisian government heavily subsidizes fuel prices, meaning that consumers pay less than the actual cost of production and importation. These subsidies are aimed at supporting the economy and easing the financial burden on citizens.
8. Liberia: There is no operating oil refinery in Liberia. All petroleum products are imported. however, with the Government subsidizes fuel prices, meaning that consumers pay less than the actual cost of production and importation. These subsidies are aimed at supporting the economy and easing the financial burden on citizens. the Liberian consumes $0.968 per Liter which makes Liberia the number 8 country in Africa and the 31st global list of lowest prices of fuel.
9. Gabon: Gabon is currently the eighth largest producer of oil in sub-Saharan Africa with a production of 198,000 barrels per day. Petroleum is the primary source of public revenue in Gabon. Gabon rejoined OPEC in the summer of 2016. This put Gabon at number 9 country with the lowest fuel price in Africa and 32nd Global rank. The Gabonese pay $0.968 per liter.
10. Ghana: The country's oil production in 2020 is over 173,000 barrels per day. Due to the continuous development of offshore resources. The Ghanaian government policies and stability can influence fuel prices. In Sudan, government interventions, including subsidies and pricing regulations, play a significant role in determining fuel prices. That puts Ghana at number 10 countries with the lowest country with the cheapest fuel in Africa and 40th on the Global list while Ghanaians pay $1.051 per Liter.
In conclusion, as of April 2024, the top 10 African countries with the lowest fuel prices per liter are led by Libya, followed closely by Egypt, and Algeria. These rankings reflect a combination of factors including government subsidies, domestic oil production, economic policies, and global market dynamics. The affordability of fuel in these countries contributes to supporting various sectors of the economy, easing the financial burden on citizens, and promoting economic stability. However, it's important to note that fuel prices can fluctuate over time due to changes in global oil prices, government policies, and other economic factors.
Author: Donald Masimbi