When filling your tank with gas and watching the numbers tick up, you may think you have it worse than everybody else.
Not so, according to data collected by Global Petrol Prices, an industry-wide fuel price tracker. Out of 170 countries analyzed, America has the 38th least expensive gasoline, placing it in the top quarter for the cheapest in the world.
As of May 26, 2025, the average price of gasoline in the world was $1.27 per liter — or $4.81 per gallon.
Here’s how prices break down by country and why some citizens enjoy extraordinarily cheap gas while others pay far more at the pump. In the U.S. there are deep price differentials among the states, too. All pricing is accurate at the time of publication.
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Countries With the Least Expensive Gas
Want to drive a vehicle for the lowest possible price? You’ll have to do so far from the U.S. The latest figures from Global Petrol Prices show the 20 countries with the cheapest gas in U.S. dollars, as of May 26, 2025. Converted into price per gallon:
— Libya: $0.106
— Iran: $0.110
— Venezuela: $0.131
— Angola: $1.238
— Kuwait: $1.298
— Algeria: $1.317
— Egypt: $1.446
— Turkmenistan: $1.620
— Kazakhstan: $1.817
— Malaysia: $1.840
— Bahrain: $2.010
— Qatar: $2.029
— Nigeria: $2.033
— Bolivia: $2.048
— Oman: $2.354
— Saudi Arabia: $2.351
— Azerbaijan: $2.449
— Iraq: $2.457
— Ecuador: $2.464
— United Arab Emirates: $2.544
According to Jonathan Ernest, an assistant economics professor at Weatherhead School of Management at Case Western Reserve University, there are several explanations for the rock-bottom gas prices in these countries.
“Overall, it’s based on forces of supply and demand,” Ernest says. “And most of these countries are in the Middle East, where there is a lot of supply and not much demand. They also don’t have a lot of extra costs with taxes, and don’t have to transport oil because it’s coming out of the ground.”
Another reason, according to Tom Seng, an assistant professor at the Neeley School of Business at Texas Christian University, is subsidization.
“Every single one of these countries on this list produces some oil, so they do have a supply, but some, like Saudi Arabia, also sell crude oil and gas at a discount to their own residents,” he says.
Countries With the Most Expensive Gas
Global Petrol Prices reported that the 20 countries with the most expensive gas as of May 26, 2025, are:
— Germany: $7.181
— France: $7.189
— Monaco: $7.196
— Mayotte: $7.242
— Portugal: $7.257
— Ireland: $7.279
— Finland: $7.302
— Italy: $7.348
— Barbados: $7.409
— Greece: $7.476
— Norway: $7.578
— Albania: $7.597
— Israel: $7.836
— Switzerland: $7.840
— Singapore: $7.983
— Liechtenstein: $8.021
— Netherlands: $8.135
— Denmark: $8.298
— Iceland: $9.146
— Hong Kong: $13.014
There are many reasons gas is significantly more expensive in these countries.
“Some of these are tiny nations that can’t dig it up out of the ground,” Ernest says. “Instead, they have to have billions of gallons shipped in, then have to figure out how to get it refined. That’s expensive.”
There is also a lack of large-scale bargaining power. Without it, they don’t get the best price at purchase.
Another reason may be a country’s efforts to move away from fossil fuels due to environmental concerns and the attempt to stem climate change. Adding taxes increases the price and decreases usage.
“Some European countries are making an effort to reduce driving, so they tax and discourage it,” Ernest says. “In the short run, people may take fewer trips, but in the long run, it is to make an easy transition to other modes of transportation.”
For example, the Tax Foundation reported that, in 2024, the Netherlands (currently the fourth-most expensive gas in the world) had the highest gas tax in the European Union at $3.23 per gallon, followed by Italy (13th most expensive gas prices) at $2.98 per gallon and Greece (11th most expensive gas prices) at $2.86 per gallon.
Why Gas in the U.S. Is Relatively Cheap
Global Petrol Prices found that the average price of gas per gallon in the U.S. on May 25, 2025, was $3.50.
Indeed, it’s a bargain compared to Hong Kong’s $13.01 per gallon and not too far off from many countries in the Middle East, where prices are at the bottom of the scale.
“We are huge consumers and huge producers,” Ernest says of the U.S.
“There is high demand but also a large and easy-to-tap-into supply. But in the U.S. we get a lot of seasonality that affects gas prices. In the summer, people take a lot of road trips, so prices usually increase,” he adds.
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The relatively low cost doesn’t ease the financial sting, though, especially when you drive many miles a month and have to fill up the tank frequently.
“When we talk about energy, the average person’s mind automatically goes to gas,” Seng says.
“That three-digit number is staring them in the face when they go to the station. Some people can cut back on driving and save money, but I feel for the independent contractors who have to fill their truck or van up for work. They have no choice,” he adds.
There is a wide range in gas prices for each state, though. According to the American Automobile Association’s June 2, 2025, figures, the 15 cheapest states for regular gas per gallon, on average, are:
— Wyoming: $2.120
— Utah: $2.298
— Mississippi: $2.402
— Missouri: $2.645
— West Virginia: $2.630
— Ohio: $2.600
— North Dakota: $2.624
— New Mexico: $2.624
— Nebraska: $2.690
— South Dakota: $2.700
— Texas: $2.709
— Louisiana: $2.717
— Alabama: $2.730
— Oklahoma: $2.774
— Arkansas: $2.786
Meanwhile, the 15 most expensive states for gas are:
— Hawaii: $4.478
— California: $4.475
— Washington: $4.398
— New York: $3.117
— Washington, D.C.: $3.038
— Massachusetts: $3.002
— Maryland: $3.044
— Connecticut: $2.996
— Illinois: $2.970
— Vermont: $2.978
— Michigan: $2.975
— Wisconsin: $2.975
— Delaware: $2.938
— Florida: $2.938
— Maine: $2.937
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Many of the discrepancies in gas prices by state can be explained by those rich in oil.
“For instance, Texas is number one for production and refining capacity of any state, so prices are low,” Seng says. “However, you also have to look at the geographic element. Anywhere in and around the Rocky Mountains will be tough to transport oil, so prices will be higher.”
However, California has the second-highest gas prices in the country, which Seng describes as an outlier. The Golden State both produces and refines gas.
In fact, according to the California Energy Commission, under normal conditions, there’s enough output to meet demand inside the state and export to other areas.
So, why is gas in California so much harder on consumers’ wallets than anywhere else in the country, except for Hawaii? A combination of factors, like higher state taxes and costlier gasoline production.
California also requires a specific blend of fuel that emits fewer greenhouse gasses. “It burns at a lower emission, and that’s expensive,” Seng says.
Don’t expect prices to remain the same wherever you are. They change constantly due to many determinants, from political alliances and trade agreements to taxes and tariffs. And oil spills destroy supply and require a labor-intensive cleanup, so they too can affect prices.
“Sometimes there are huge changes in price because of a real disruption in supply, too, like a cyber attack on the pipeline that occurred in 2021,” Ernest says. “People ran out to buy gas before it ran out, and the prices increased. It’s such a dynamic market.”
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A Look at Gas Prices Around the World originally appeared on usnews.com
Update 06/18/25: This story was published at an early date and has been updated with new information.
