Despite importing refined petroleum products due to the failure of its moribund refineries, which have gulped over N4.15trillion in maintenance since 2015, oil-rich Nigeria has the eight cheapest petrol in the world, costing about $0.40 (N166) per litre, according to a report.
The report, published by Zutobi, an international driver’s education company with courses in the United States, United Kingdom, Sweden, Australia, France and Germany, revealed that the average cost of a gallon of petrol in Nigeria is $1.82 (N755), compared to Hong Kong, which has the highest price of petrol anywhere in the world at $13.10 (N5,438) per gallon and $2.88 (1,195) per litre.
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The Netherlands is the second most expensive place for petrol around the world, costing $11.75 per gallon. This is $5.69 more than the global average, making it the most expensive country in the western world.
At just $0.39 less than the Netherlands, Norway is the third most expensive country for petrol prices. Norwegians have to pay $11.36 per gallon on average. Other top 10 countries with most expensive petrol prices per litre are Monaco ($2.49), Zimbabwe ($2.35), Denmark ($2.34), Finland ($2.33), Italy ($2.31), Germany ($2.30) and Liechtenstein ($2.28).
Top 10 countries with the most affordable petrol prices
Venezuela ranks first as it costs $0.03 (N12) per litre and $0.11 (N45) per gallon, which is $5.95 cheaper than the global average. Libya comes in as the second cheapest, with the cost per gallon being only $0.15 (N62) while a litre is $0.03.
Iran has the third cheapest fuel price per litre at $0.05 (N20), which is considerably less than Syria (the fourth-cheapest) at $0.32 (N132). Algeria ($0.32), Kuwait and Angola at ($0.35) complete the top seven countries with the most affordable petrol prices per litre.
Kazakhstan and Turkmenistan, where a litre of petrol is sold at $0.41 and $0.43, respectively, also made it to the top 10.
The report also discovered that Iran has seen the biggest decrease in petrol prices anywhere in the world over the past half decade. Prices have been slashed by almost 3,000 per cent while the price of petrol in Saudi Arabia has risen by almost 300 per cent in the last five years, making it the country that has seen the biggest increase in fuel prices in the world.
Venezuela, Libya and Iran are the only countries where the cost per gallon of fuel is less than a dollar. On the other hand, Hong Kong, the Netherlands, Norway and Monaco are countries that have prices of over $11 per gallon.
The deep, endless hole
A recent investigation by Daily Trust revealed that the N12.05trn spent by the federal government on maintenance and rehabilitation of refineries, as well as fuel subsidy in seven years, is more than enough to build a brand new 650,000 barrels per stream day (bpsd) refinery and another 325,000bspd refinery.
Such a new refinery would have been bigger than the three moribund refineries built many years ago.
Over time, the three refineries had guzzled billions of naira in the name of “upkeep”, yet, could not produce any refined oil for domestic consumption.
The three refineries have a combined 445,000bpsd capacity. Port Harcourt refinery complex (old and new site) has 210,000bpsd, Warri has 125,000bpsd and Kaduna has 110,000bpsd capacity.
The collective failure of the refineries had forced the oil-rich Nigeria to depend on importing refined petroleum products after exporting the crude.
Sadly, a large chunk of dollars accrued to Nigeria is being used to import the refined oil for domestic use, obstructing channelling the funds for social and economic development.
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