The war in Iran, which has cut off a key shipping route for oil, has sparked aggravation and concern at the pump for American consumers.
When filling your tank with gas and watching the numbers tick up, you may think you have it worse than everyone else in the world. Not so, according to data
collected by Global Petrol Prices.
As of March 2, the average price of gasoline in the world was $4.96 per gallon. Out of 170 countries analyzed, the U.S. holds its spot as the 33th least expensive for gasoline, placing it in the top quarter for the cheapest in the world.
Here’s how prices break down by country as well as by U.S. state, and why some citizens enjoy extraordinarily cheap gas while others pay far more at the pump.
| Rank | Most expensive country for gas | Price (USD/gallon) | Least expensive country for gas | Price (USD/gallon) |
| 1 | Hong Kong | $14.69 | Libya | 9 cents |
| 2 | Malawi | $10.82 | Iran | 11 cents |
| 3 | Netherlands | $9.14 | Venezuela | 13 cents |
| 4 | Denmark | $8.94 | Angola | $1.24 |
| 5 | Israel | $8.86 | Kuwait | $1.29 |
[Gas Price Trends and 5 Ways to Save]
Countries With the Cheapest Gas
Want to drive for the lowest possible price? You’ll have to do it 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 March 2. Price per gallon:
1. Libya – 9 cents
2. Iran – 11 cents
3. Venezuela – 13 cents
4. Angola – $1.24
5. Kuwait – $1.29
6. Algeria – $1.36
7. Egypt – $1.59
8. Turkmenistan – $1.63
9. Kazakhstan – $1.85
10. Qatar – $1.98
11. Saudi Arabia – $2.35
12. Oman – $2.35
13. Bahrain – $2.36
14. Iraq – $2.46
15. Malaysia – $2.49
16. Bhutan – $2.49
17. Nigeria – $2.55
18. United Arab Emirates (UAE) – $2.56
19. Azerbaijan – $2.56
20. Sudan – $2.65
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. “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. With the exception of Bhutan, all of the countries on this list produce oil. “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 March 2 are:
1. Hong Kong: $14.69
2. Malawi: $10.82
3. Netherlands: $9.14
4. Denmark: $8.94
5. Israel: $8.86
6. Norway: $8.39
7. Germany: $8.31
8. Liechtenstein: $8.28
9. Singapore: $8.22
10. Switzerland: $8.17
11. Finland: $7.90
12. Greece: $7.82
13. Uruguay: $7.76
14. Ireland: $7.67
15. France: $7.64
16. Portugal: $7.51
17. Mayotte: $7.50
18. Italy: $7.39
19. Monaco: $7.36
20. Barbados: $7.27
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.”
Additionally, they lack large-scale bargaining power. Without it, they can’t secure the best purchase prices.
Another reason may be a country’s efforts to reduce reliance on fossil fuels for environmental reasons and to combat climate change. Higher taxes raise prices and decrease 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, Tax Foundation Europe reported that, as of 2026, the Netherlands levied the highest tax on petrol at $3.76 per gallon. Now that country has the most expensive gas prices in the European Union.
Impact of U.S. Tariffs on Fuel Costs
In addition to producing and refining crude oil domestically, the U.S. imports it from various countries. According to the latest American Fuel & Petrochemical Manufacturers report, nearly 60% of the crude oil entering the U.S. is from Canada and 7% is from Mexico.
However, the Trump administration began applying tariffs on imported goods in 2025. Crude oil from Mexico is subject to a 25% tariff, and crude oil from Canada carries a 10% tariff.
“The tariffs that were implemented last year have already been absorbed into the price at the pump,” says Seng. “The impact was lessened by the supply surplus that existed for most of last year and into this year, especially after lower-than-normal demand last summer.”
[What Costs More Under Trump’s Tariffs: Expectations vs. Reality]
Why Gas in the U.S. is Cheap Compared to the Rest of the World
Despite the recent tariffs, Global Petrol Prices found that the average price of gas in the U.S., as of March 2 was $3.37 per gallon. Compared to Hong Kong’s $14.69 per gallon, prices in the U.S. are a bargain, and not too far off from many countries in the Middle East.
Ernest explains that U.S. retail gas prices remain relatively low because the country is both a major consumer and a big producer of gasoline. “There is high demand but also a large and easy-to-tap-into supply,” he says. “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.”
The relatively low cost offers little relief when prices rise, especially for those who drive many miles a month and fill their tanks 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.
States with the Least and Most Expensive Gas
In the U.S., there is a wide range in gas prices for each state, too. Per the American Automobile Association’s March 10 figures, the 15 cheapest states for regular gas per gallon, on average, are:
— Kansas: $2.96
— Oklahoma: $3.01
— Missouri: $3.03
— Arkansas: $3.05
— North Dakota: $3.08
— South Dakota: $3.10
— Louisiana: $3.11
— Alabama: $3.13
— Tennessee: $3.14
— Nebraska: $3.15
— Mississippi: $2.99
— Kentucky: $3.15
— Wisconsin: $3.18
— Montana: $3.19
— Iowa: $3.19
Meanwhile, the 15 most expensive states for gas are:
— California: $5.29
— Washington: $4.69
— Hawaii: $4.59
— Nevada: $4.30
— Oregon: $4.26
— Arizona: $3.97
— Alaska: $3.95
— Pennsylvania: $3.64
— Florida: $3.63
— Michigan: $3.61
— Illinois: $3.60
— District of Columbia: $3.56
— Colorado: $3.53
— Maryland: $3.50
— Indiana: $3.49
Many of the discrepancies in gas prices by state can be explained by those rich in oil.
“For instance, Texas is No. 1 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 calls an outlier, despite the state both producing and refining its own gasoline.
Historically, California has had enough crude oil output to meet demand inside the state and to export it to other areas, but large-scale refinery closures are having an effect. The Phillips 66 Long Beach refinery that produced 139,000 barrels per day closed in December 2025. Valero Benicia refinery, which can produce 170,000 barrels per day, will cease operations by April 2026.
Other key factors driving California’s high gas prices include high state taxes the requirement to use special low-emission fuel blend. “It burns at a lower emission, and that’s expensive,” Seng says.
[How Transportation Costs Impact Inflation]
How Can You Save Money on Gas in 2026?
Prices at the pump may have you considering a new fuel-efficient automobile, but think carefully before making a purchase.
“When fuel prices spike, some consumers will want to get rid of their gas-guzzling car and replace it with something more fuel efficient,” says John Vincent, senior editor for vehicle testing at U.S. News. “Unfortunately, doing so costs thousands of dollars to chase perhaps hundreds of dollars in savings.”
Consider using a gas app or joining a warehouse club such as Costco to find other gas savings. Regular car maintenance and calm driving may also stretch your gas budget.
More from U.S. News
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A Look at Gas Prices Around the World originally appeared on usnews.com
Update 03/10/26: This story was published at an early date and has been updated with new information.
