A new report has shown that despite the country’s struggling economy, Nigerians are currently paying more at the pumps for petrol than some other more developed oil-producing nations of the world.
Although the country ranks 22nd in the cheapest petrol price category globally, however citizens of Nigeria pay more for fuel than Saudi Arabia, Russia, Iraq, Qatar and Omar, the survey showed.
The report by globalpetrolprices.com, also revealed that Nigerians currently pay an average of $0.722 (N660.25) as against for instance Iran which has the world’s cheapest fuel at just $0.029 (N26.52) per litre as of January this year.
Also, the data showed that Libya, Venezuela, Kuwait, and Saudi Arabia, enjoy very low domestic fuel costs, with Libya selling for as low as $0.031, that is roughly N28.35 while Venezuela sells a litre for $0.035 or N32.01.
However, Hong Kong emerged the highest, with a price per litre of petrol of $3.101 or N2,835.77.
Succeeding Nigerian governments have since the return of democracy in Nigeria argued that payment of subsidy on petrol prices remains a heavy burden on government finances.
Before the Bola Tinubu administration removed petrol subsidy on May 29, 2023, the product was selling for about N195 per litre in several parts of Nigeria. However, with the withdrawal of subsidy, the price of the product now sells for between N600 to N700 in several parts of the country.
Other countries which pay less for petrol aside Russia, Saudi Arabia, Iran, Iraq and Libya, according to the report, are: Algeria with $0.342; Kuwait which sells for the same price; Angola ($0.362); Egypt ($0.403) and Turkmenistan (($0.428).
Also selling below Nigeria’s price are: Malaysia, Bahrain, Kazakhstan, Bolivia, Azerbaijan, Ecuador, Sudan and Belarus.
“The average price of gasoline around the world is 1.29 US Dollars per litre. However, there is a substantial difference in these prices among countries.
“The average price of gasoline around the world is $1.30 per litre. However, there is substantial difference in these prices among countries. As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices.
“One notable exception is the US which is an economically advanced country but has low gas prices. The differences in prices across countries are due to the various taxes and subsidies for gasoline (petrol).
“All countries have access to the same petroleum prices of international markets but then decide to impose different taxes. As a result, the retail price of gasoline is different,” it added.
It stressed that crude oil prices, exchange rates, seasonality, as well as refining and market distribution costs were some of the determinants of petrol pump prices.
While Hong Kong topped the countries with the highest petrol price, with $3.101 (N2,835.77) per litre, Europe consistently had high rates as Monaco is paying $2.353 or roughly N2,151.75 and Norway citizens are paying $2.052 or an estimated N1,876.49 this month.
The United States came in at $0.911 (N833.08) per litre, putting it near the global average of $1.30 (N1,188.81). Brazil is selling at $1.150 or N1,051.64, while India is selling for $1.252 or N1,144.92 this January.
Despite being Africa’s biggest oil producer, Nigeria does not currently refine a drop of the petrol it consumes due to the many years of mismanagement of the refineries.
However, the Dangote refinery as well as the 60,000 bpd Port Harcourt refinery could soon significantly ameliorate the situation when they come on stream.
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