With the advent of technology, life has become so much easier for all of us. Not long ago people used to wait for days to receive message from near and dear ones. But now, the time taken to travel from one place to another is less than time required to send a letter via post. However, with the ease of transport came the blow of rising fuel cost. The cost of fuel is the most unstable thing across the world and it depends on crude oil price, oil company cost, taxes and, exchange rate, reports Rediff.com.
Because of the presence of considerable oil reserves in home-grounds, few countries are fortunate enough to get this motor spirit at affordable prices. Read on to know the countries where petrol is cheapest in the world.
Price per litre: 6.49 ($0.12)
It is a place where the price of most of the objects goes up other than petrol. The price of petrol has always been cheap and now it has become almost free. In Venezuela, following the official exchange rate, the premium gasoline comes at around 5.8 U.S. cents. The price of petrol has been kept constant for almost 14 years under the rule of late President, Hugo Chavez, even though the tropical capital has hit big time inflation.
Monthly income expenditure on petrol: 2.73 percent.
Price per litre: 7.30 ($0.14)
The Egyptian government is planning to cut down the fuel subsidies as a measure to control its budget deficit. The size of fuel subsidies is expected to reach 120 billion Egyptian dollars in the current fiscal. The subsidies have hit the economy hard and lead to blackouts and fuel shortages in Cairo. The next few months are expected to witness reforms like fuel-rationing card in an attempt to curb smuggling of fuel.
Monthly income expenditure on petrol: 4.39 percent
3. Saudi Arabia
Saudi Arabia holds one-fifth of world’s total oil reserves and the crude from this country still influences fuel prices across the global. It is the second home to cheapest petrol in the Middle East after Egypt. The country, however, is working on methods to use wind, solar and nuclear power to produce energy and bring down the use of crude and natural gas to generate electricity.
Monthly income expenditure on petrol: 0.98 percent.
Prior to discovery of oil, the economy of Qatar ran on fishing and pearl hunting. In 1940, after the discovery of oil reserves, the economy of the country improved significantly. Because of the absence of income tax, Qatar is rated as one of the countries with lowest tax rates in the world. The economy is highly dependent on petroleum and natural gas and as of 2012, it has the highest GDP per capita in the world.
Monthly income expenditure on petrol: 0.40 percent
Bahrain is situated near the western shores of the Persian Gulf. The country has been recognized as the fastest growing economy in the Arab world and is highly dependent on demand for oil. 60 percent of the country’s export, comes from petroleum production and processing. It also accounts for 70 percent of government revenues and 11 percent of its GDP.
Monthly income expenditure on petrol: 1.81 percent.
Libya has the largest oil reserves in entire Africa and its economy primarily benefits from oil sector which accounts for 97 percent of export and 80 percent of GDP. It is also a major contributor of light to the global supply. Because of its small population and handsome revenues from energy sector, Libya is one of the countries with highest per capita GDPs in Africa.
Monthly income expenditure on petrol: 3.32 percent.
Turkmenistan has the fourth largest oil reserves in the world. It has an oil reserve of about 700 million tons. The extraction of oil started in 1909 in Cheleken and it took a leap with the discovery of oil fields in Kumdag and Koturdepe. Most of its oil is refined in Turkmenbashy and Seidi refinaries. It exports oil to Europe through Caspian Sea via canals.
Monthly income expenditure on petrol: 17.79 percent.
Price per litre: 14.31 ($0.26)
With a GDP of $167.9 billion and per capita income of $81,800, Kuwait stands as the 5th richest country in the world. The major export products are petroleum and petrochemical products and the country earns about $94.47 billion on exports. The government of Kuwait is trying to make the country a regional trading and tourism hub and less dependent on oil for its growing economy.
Monthly income expenditure on petrol:1.2 percent.
Algeria is the 10th country in the world with the largest natural gas reserve of 160 trillion cubic feet of natural gas resources. It ranks 14th in petroleum reserves and about 60 percent of its budget revenues comes from petroleum. The hydrocarbon is also responsible for about 30 percent of its GDP and 95 percent of export earnings.
Monthly income expenditure on petrol: 11.85 percent
The economy of the country is dependent on state ownership of oil, village agriculture, small scale private trading and, service venture. The GDP was about $482.4 billion in 2011, while in 2006 about 45 percent of the government’s budget came from oil and natural gas reserves. The European Union restriction on Iranian crude has led to a steep fall in the value of rial.
Monthly income expenditure on petrol: 6.53 percent.