If there is one thing that is guaranteed to get people’s attention, it is fuel prices. It affects us all, either directly or indirectly, but the most confrontational time is at the pump, when we are filling up our vehicle.

While a select few countries monopolise the fuel extraction industry, the price of petrol and diesel varies from country to country, depending on affordability, availability, and local taxes.

A new study from Australian insurance company Budget Direct has looked at the cost of petrol and diesel worldwide, indexing it for an up-to-date picture of prices and affordability in every country where data is available.

As you might have expected, a country in the Middle East has the most affordable fuel. New Zealand sits in 23rd place.
BUDGET DIRECT CAR INSURANCEAs you might have expected, a country in the Middle East has the most affordable fuel. New Zealand sits in 23rd place.

The results are split into the straight price per litre for fuel and affordability, which was calculated as a percentage of the cost of 80 litres of fuel to the average monthly salary. Income per capita data was taken from the World Bank, while petrol and diesel prices from February 2021 were used.

The results were pretty much what you would expect, with the most affordable fuel being found in high-income, low fuel cost Middle East countries, including United Arab Emirates, Kuwait, and Qatar. The US is the fourth-most affordable market for petrol and diesel, and Australia has the sixth (petrol) and eighth (diesel) most affordable fuel.

Angola has the cheapest petrol in the world, at just US$0.24 per litre.
BUDGET DIRECT CAR INSURANCEAngola has the cheapest petrol in the world, at just US$0.24 per litre.

New Zealand comes in at 23rd place for petrol affordability, while we have the 13th most affordable diesel, although this doesn’t take road user charges into account, which would technically bump us down the list a bit when taken into account.

According to Budget Direct’s calculations, it costs 4.2 per cent of the average Kiwi monthly salary to fill an 80 litre tank with petrol calculated at an average of US$1.49 (NZ$2.08) a litre, compared to the most affordable country, which is Qatar where it costs just 0.8 per cent, thanks to a high average income and petrol costing just US$0.41 (NZ$0.57) a litre. Angola undercuts that per-litre price, however, with a ridiculously cheap price of just US$0.24 per litre. Yes, that’s 33 cents in New Zealand money…

At the other end of the spectrum, the country with the least affordable petrol is in the East African country of Burundi, where it takes a hefty 576 per cent (yes, you read that right) of the average monthly salary to fill an 80 litre tank at a cost of only US$1.23 (NZ$1.72) per litre.

Of course, taxes affect prices massively, which is why it is not entirely accurate to calculate our diesel prices on the pump price alone. Tax on fuel is high in Europe, in many cases to fund environmental initiatives and discourage driving, while the US (where petrol costs US$0.72 per litre), China (US$1.02), and Russia (US$0.62) subsidise fossil fuels to the tune of around US$900 billion annually between them to encourage local energy production.

The least affordable fuel is mostly found across Africa, largely due to low average income rather than the cost, which is actually moderate.

Extracted in full from: https://www.stuff.co.nz/motoring/125116950/which-country-has-the-most-affordable-petrol

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