Global drivers are feeling the pinch of rising fuel costs, but a handful of countries continue to stand out for having remarkably cheap gasoline. Updated rankings for 2025 show just how wide the gap is between the cheapest markets and the rest of the world.
Top 5 cheapest countries for gasoline
| Rank | Country | Price per gallon (USD) |
|---|---|---|
| 1 | Iran | $0.13 |
| 2 | Libya | $0.14 |
| 3 | Venezuela | $0.16 |
| 4 | Egypt | $1.29 |
| 5 | Algeria / Kuwait | $1.55 |
Why are prices so low?
- Government subsidies play the biggest role. Countries like Iran, Libya, and Venezuela heavily subsidize fuel for domestic use, shielding consumers from global market prices.
- Oil production advantage also matters. These nations have large crude reserves, which allows them to supply domestic markets at a fraction of international costs.
- Currency policies and fixed fuel pricing systems keep pump prices stable, even when crude oil prices fluctuate elsewhere.
The global contrast
For comparison, the average gasoline price worldwide hovers around $4.50 per gallon, more than 30 times higher than what drivers pay in Iran. In the United States, the current average sits at about $3.40 per gallon, depending on the state.
Bottom line
If you’re driving in Iran, Libya, or Venezuela, fuel costs are almost negligible compared to the global average. But for most countries, rising oil prices and reduced subsidies mean higher costs at the pump will remain a challenge through 2025.
