Picodi analysts looked at the mechanics of fuel price changes in Nigeria and throughout the world in the first half of the year and examined how many litres of petrol an average Nigerian earning an average salary could purchase.
Petrol prices have stabilized
In most countries, the petrol price in June remained unchanged or differed from the price in January by less than 10%. Only in Nigeria petrol became noticeably more expensive – 163%. In Mauritius, petrol was cheaper than in January by 5%.
In Nigeria, the average petrol price in June 2023 was ₦532.50, over twice as much as in January (₦202.48).
The petrol prices remained unchanged in two countries – Algeria and Tunisia.
Petrol Index 2023
The lowest petrol prices can be found in Tunisia ($0.82/litre), Egypt ($0.37/litre) and Algeria ($0.34/litre). On the other hand, the highest petrol prices have to be paid by drivers from Mauritius ($1.62/litre), Zambia ($1.46/litre), and Kenya ($1.32/litre). In Nigeria, petrol costs $0.89/litre, 13 cents less than the continental average.
The relation between petrol prices and local average wages
With the average wage, the most petrol can be bought by the citizens of countries such as South Africa (968 litres), Algeria (792 litres), and Egypt (396 litres).
According to the newest Numbeo data, the average wage in Nigeria is ₦91,461 net monthly. This means that an average Nigerian can buy only 172 litres of petrol (9th out of 9 countries). Last year, in the same period, the average wage could buy 391 litres (219 litres less).
This is what the petrol index in Nigeria looked like in the last 5 years:
- 2019 – 501 litres;
- 2020 – 539 litres;
- 2021 – 431 litres;
- 2022 – 391 litres;
- 2023 – 172 litres.
Compared to 2022, the three leaders have not changed: Algeria ($0.34/litre), Kuwait ($0.34/litre) and Iran ($0.35/litre) are still the cheapest countries in the world. Hong Kong continues to be the most expensive country with a litre of petrol costing $2.99.
In the global ranking of purchasing power, the podium belongs to the Gulf countries: with the average wage the most petrol can be bought in Kuwait (7,222 litres), Qatar (6,839 litres), and the United Arab Emirates (4,611 litres).
On the other hand, the Petrol Index looks the worst in these countries:
- Pakistan – 166 litres for the average wage;
- Sri Lanka – 157 litres;
- Cuba – 27 litres.
