Why Gas Is So Cheap in Iran: The World’s Second Lowest Fuel Prices

Iran continues to maintain some of the lowest fuel prices globally, driven by extensive government subsidies and its position as a major oil producer. Recent data indicates that gasoline in Iran remains significantly cheaper than the global average, often placing it among the most affordable options in the world.

Current Pricing and Global Comparison

According to data from GlobalPetrolPrices.com as of April 6, 2026, the price of octane-95 gasoline in Iran is 15,000 Iranian Rial per liter. When converted to U.S. Currency, this amounts to $0.029 per liter.

This pricing structure creates a stark contrast with global market trends. For the same period, the average global price of gasoline was reported at 773,497.49 Iranian Rial per liter.

Iran’s fuel costs frequently compete with Venezuela for the lowest rates worldwide. Data from April 27, 2026, shows that octane-95 gasoline in Venezuela is priced at 0.84 Venezuelan Bolivar per liter, which converts to approximately $0.035 per liter.

Market Drivers and Policy

The disparity between Iran’s domestic pump prices and international market rates is the result of strategic government intervention. While Iran is a primary global oil producer, the cost paid by consumers is decoupled from international crude prices through a system of heavy subsidies.

The domestic pricing model is further influenced by fuel quotas and specific government-managed price systems. These policies are designed to keep essential transportation costs low for the population, though they create a significant gap between the cost of production and the retail price.

Regional Context and Economic Impact

The impact of these low prices is evident when compared to other energy-rich nations. Trading Economics reported gasoline prices in Iran at $0.36 per liter in February 2026, though other tracking services, such as GlobalPetrolPrices.com, show significantly lower rates for specific fuel grades like octane-95.

For comparison, other countries with relatively low fuel costs as of April 2026 include:

• Kuwait: $0.28 per liter
• Egypt: $0.42 per liter
• Malaysia: $0.50 per liter
• Saudi Arabia: $0.62 per liter

These figures underscore Iran’s position at the bottom of the global pricing scale, where fuel is treated more as a subsidized public utility than a market-priced commodity.