The cost of petrol in oil-producing countries is often influenced by a mix of market forces, policies, and economic factors. In Africa, the prices of petrol vary significantly from one country to another, with some oil-producing nations having lower prices than others. According to the December 2024 Gasoline Price Report published by Global Petrol Prices, the global average price of petrol during the period was $1.24 per litre.

However, significant variations were observed across countries, primarily due to differences in taxes and levies. The report highlighted that these price disparities are driven by varying levels of taxes and subsidies applied to gasoline in different regions. As a general rule, richer countries have higher prices while poorer countries and those that produce and export oil have significantly lower prices.

The top oil-producing countries in Africa presented different petrol prices, with some registering high costs while others recorded low petrol costs. Libya had the lowest petrol price on the continent at $0.031 per litre, ranking second globally. Angola followed closely at $0.329 per litre, Egypt at $0.335 per litre, Algeria at $0.343 per litre, Sudan at $0.700 per litre, and Ethiopia at $0.718 per litre.

The data also showed that Ghana's price was highest at $1.95 per litre. Gabon’s price came second highest at $0.952 while Nigeria sold for $0.768 as of December 16, 2024. However, following a recent collaboration between the Nigerian National Petroleum Company Limited (NNPCL), Dangote refinery, and petroleum marketers, Nigeria’s fuel price has been reduced to between N935 per litre and N965, which is about $0.6 per litre.

The disparity in global PMS prices can be attributed to several economic, political, and structural factors, which vary significantly from one country to another. Each country's situation is unique, shaped by its governance, infrastructure, and approach to managing its resources. The report stated that "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 ranking of the top 10 African oil-producing countries with the cheapest petrol prices in December 2024 is as follows: Libya at $0.031 per litre, Angola at $0.329 per litre, Egypt at $0.335 per litre, Algeria at $0.343 per litre, Sudan at $0.700 per litre, Ethiopia at $0.718 per litre, Nigeria at $0.768 per litre, Tunisia at $0.80 per litre, Gabon at $0.92 per litre, and Ghana at $1.04 per litre.

The report's findings have significant implications for the energy sector in Africa, highlighting the need for oil-producing countries to reassess their taxation policies and subsidies to make petrol more affordable for their citizens. As the global energy landscape continues to evolve, it will be interesting to see how these countries adapt to changing market forces and economic factors.

In conclusion, the variation in petrol prices across African oil-producing countries is a complex issue influenced by a multitude of factors. As the continent continues to navigate the challenges of energy production and distribution, it is essential to monitor these trends and identify opportunities for growth and development.