Iran is currently offering the cheapest petrol in the world, priced at just $0.03 per liter, equivalent to around Rs. 8.4, as of December 17, 2025, according to data shared by Rhinocarhire.com. The exceptionally low fuel price is the result of long-standing and heavy government subsidies aimed at keeping transportation and daily living costs affordable for the public.
Venezuela ranks second, with petrol priced at approximately $0.04 per liter, continuing its policy of ultra-low fuel rates despite ongoing economic challenges. Several other oil-producing countries also feature among the nations with the cheapest petrol prices globally. Kuwait, Saudi Arabia, and Algeria benefit from abundant domestic oil production and state-backed pricing mechanisms that allow fuel to be sold at significantly lower rates than the global average.
While such low petrol prices provide major financial relief to citizens and help reduce transportation and logistics costs, they also carry broader economic implications. Fuel subsidies can place considerable pressure on national budgets, limit government spending in other sectors, and encourage excessive fuel consumption, which may strain energy resources and increase environmental concerns.
Globally, petrol prices vary widely due to differences in oil production capacity, taxation policies, subsidy structures, currency exchange rates, and overall economic strategies. The stark contrast between heavily subsidized fuel prices in oil-rich nations and high fuel costs in importing countries highlights the unequal nature of fuel affordability around the world and the significant role government policy plays in shaping consumer energy costs.
