Libya Tops Global Ranking of Cheapest Gasoline Prices
Libya has the world’s cheapest gasoline, with prices averaging just $0.088 per gallon, according to data published by Global Petrol Prices on October 5, 2026.
A report by automotive website Jalopnik ranked Libya first among eight countries where gasoline costs less than $2 per gallon, despite rising fuel prices globally. The US average price stands at $4.65 per gallon, making Libyan fuel roughly 53 times cheaper.
Global Comparison of Gasoline Prices
Iran ranks second with gasoline priced at $0.108 per gallon, followed by Venezuela at $0.132. Other countries in the list include Angola at $1.237, Kuwait at $1.284, Algeria at $1.323, Turkmenistan at $1.621, and Egypt at $1.738 per gallon.
The report attributes these low prices mainly to government subsidies, particularly in oil-producing countries. Libya’s vast oil reserves and state-supported pricing system help keep gasoline prices among the lowest worldwide.
High Cost of Fuel Subsidies
While low gasoline prices benefit consumers by reducing transportation costs, they come at a heavy cost to Libya’s public finances. The report estimates Libya spends about $7 billion annually on fuel subsidies to maintain these low domestic prices, well below international market levels.
Fuel Smuggling Challenges
Fuel smuggling adds another layer of economic strain. The report estimates that up to 30% of Libya’s subsidized gasoline is smuggled across borders. The significant price gap between Libya and neighboring countries drives this illegal trade.
Despite offering the world’s cheapest gasoline, Libya faces ongoing challenges. The financial burden from subsidies and losses due to smuggling remain major concerns for the country’s economy and government budget.
