In December 2024, petrol prices across African oil-producing nations varied significantly, influenced by factors such as government subsidies, economic policies, and global oil market dynamics. According to data from GlobalPetrolPrices.com, the global average petrol price was $1.24 per litre during this period. However, several African countries offered petrol at prices well below this average, primarily due to substantial government subsidies and domestic oil production capabilities.
**Libya** emerged as the African country with the cheapest petrol, priced at approximately $0.03 per litre. This extremely low cost is largely attributed to the government's heavy subsidies, aimed at leveraging the nation's substantial oil reserves to provide affordable fuel to its citizens.
Following Libya, **Angola** offered petrol at $0.33 per litre. As Africa's second-largest oil producer, Angola utilizes its oil wealth to subsidize fuel prices, making energy more accessible to its population. However, these subsidies have been noted to exert pressure on the national budget, especially in the face of fluctuating global oil prices.
**Egypt** and **Algeria** also featured among the countries with lower petrol prices, at $0.34 and $0.343 per litre, respectively. Both nations are significant oil and gas producers and maintain government subsidies to keep fuel prices affordable. In Egypt, there have been efforts to gradually reduce these subsidies to improve fiscal health, yet prices remain relatively low compared to other African nations.
**Sudan** and **Ethiopia** offered petrol at $0.70 and $0.72 per litre, respectively. Sudan's government traditionally subsidizes fuel prices to ensure accessibility, despite economic challenges such as inflation and political instability. Ethiopia, primarily an oil importer, keeps fuel prices relatively low through government subsidies, supporting its rapidly growing population.
**Nigeria**, Africa's largest oil producer, had petrol priced at $0.77 per litre as of December 16, 2024. Historically, Nigeria has subsidized fuel prices to make energy affordable. However, the removal of these subsidies earlier in the year led to increased fuel prices, contributing to a cost-of-living crisis. In response, the government initiated a compressed natural gas (CNG) program to reduce transportation costs by converting vehicles to run on CNG, leveraging the country's abundant gas reserves.
**Tunisia** and **Gabon** had petrol prices at $0.80 and $0.92 per litre, respectively. Tunisia's government subsidies help keep fuel prices lower than in many neighboring countries, despite the nation's reliance on oil imports. Gabon, an oil-producing country, provides subsidies to maintain affordable fuel prices, supporting the local economy.
**Ghana** recorded the highest petrol price among the surveyed oil-producing African nations, at $1.95 per litre. The higher cost is influenced by factors such as taxes, levies, and the absence of substantial subsidies. To address the high fuel import costs, Ghana is considering importing petroleum products from Nigeria's Dangote Oil Refinery once it reaches full capacity. This move aims to reduce import expenses and potentially lower domestic fuel prices.
In summary, while several African oil-producing countries offer petrol at prices below the global average, the affordability is often a result of government subsidies and domestic production capabilities. However, these subsidies can strain national budgets, especially when global oil prices fluctuate. Conversely, countries like Ghana, with higher petrol prices, are exploring alternative import strategies to mitigate costs and provide relief to consumers.
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