Fuelling Inequality: Global Petrol Prices Expose Economic Disparities

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A recent report, “Global Petrol Prices, Octane-95, January 1, 2024,” paints a stark picture of the economic disparities reflected in petrol costs around the world. While Nigeria ranks among the 22 cheapest countries for petrol, some nations are paying over 100 times more per litre.

“The average price of petrol around the world is 1.29 US Dollars per litre. However, there is a 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 U.S. 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. 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,” the report said.

The report highlights a clear trend: wealthier countries tend to have higher fuel prices, while poorer nations and oil producers enjoy significantly lower costs. This correlation stems from several factors, including taxation policies, refining capacities, and currency fluctuations.

However, the report also shines a light on exceptions, such as the United States. Despite being an economically advanced nation, the US boasts relatively low gas prices due to factors like its domestic oil production and lower fuel taxes compared to many European nations.

This global snapshot of petrol costs raises important questions about economic fairness and energy security. While cheaper fuel may be beneficial for consumers in Nigeria and other developing nations, it can also hinder investment in renewable energy alternatives and contribute to environmental concerns.

Further analysis is needed to delve deeper into the reasons behind these price discrepancies and explore potential solutions. Policy adjustments, international cooperation, and investments in clean energy technologies could all play a role in creating a more equitable and sustainable fuel landscape for the future.