By Shane McGinley
Saudi Arabia takes second spot in rankings; report says petrol cheaper than water in Venezuela
Saudi Arabia has the cheapest petrol prices in the Gulf region but is behind Venezuela in a global list of the lowest fuel costs, according to a new report.
Home to nearly a fifth of the world’s oil reserves, Saudi Arabia is the largest exporter of petroleum and a major player on the global energy stage. With 90 percent of its earnings coming from oil, it is hardly surprising that citizens only pay an average of around $0.127 per litre at the petrol pumps.
The list of the world’s cheapest petrol prices was compiled by British car insurance provider Staveley Head, with Venezuela taking the top spot, where prices only cost an average of $0.047 per litre.
With President Hugo Chavez keeping prices low, petrol is cheaper than bottled water in some parts of the South American country.
While four Gulf States are listed amongst the rankings, the UAE was notably absent. The news comes as Dubai-owned oil firm Enoc Group has been plagued by fuel shortages this year, with petrol pumps this summer forced to cease or ration resources.
At one point, the Abu Dhabi National Oil Company (Adnoc) was ordered to “help solve” the fuel shortage in Sharjah after the UAE suffered its third shortage in less than a year.
Analysts said the problem lies in government subsidies, which look increasingly unsustainable as soaring oil prices drive up the cost of supplying fuel to customers at a cheaper, fixed price.
Enoc and rival state-owned retailer Emarat have suffered because they buy fuel at market prices and sell it at government-set rates. Enoc said in May it would have to meet an additional AED2.7bn ($735.3m) in 2011 to cover the cost of providing subsidised fuel.
Three of the UAE's four fuel retailers - Enoc, Eppco and federally-owned Emarat - have been making losses for years.
The Staveley Head rankings found the Norway was the most expensive country for petrol, costing $2.6 per litre.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
If countries realy want to sort the Green house gasses then this is where to start they could also invest all of them a % in alternative energy
i am an expat living in Kuwait and paying 1.40 pounds in the uk to 20 pence here seems stupid
where is the world trade organisation here clearly subsidies not giving a fair playing field and what a waste of an opportunity for the governments in these countries to raise investment in other areas to reduce the dependancy on oil
having oil is a luxury.. and you dont just give it to other countries to stable the world..
imagine my country is producing oil and i get it for $0.2 a litre.. and some guy in UK also gets it for $0.2 a day... that would be crazy...
more the demand.. less the supply... higher the prices...
THIS IS BUSINESS.. NOT CHARITY!
Where is the Fair Play when you sell your goods to other countries?Do you think shell, BP,Total and others do Oil extraction Free of cost ?
inadia promoting the intrests of private monopolies like reliance etc so the rate of petrol will be higher always this is only fate !!!!!
When one considers the obvious profit levels enjoyed by Shell, BP, Total, &c, then yes.....their extraction and refinement would WAY surpass 'free of cost'?