The Cheapest And Most Expensive Countries To Buy Gas

Cars and motoring can be quite divisive. Most people, enthusiasts in particular, have strong opinions about which cars are best, which are overrated, and what rules, tips, and good practices you should follow when out on the road. However, something virtually all of us can agree on, is that driving and owning a car in 2025 isn't exactly cheap.

The average price of a new car in the U.S. has been sitting at just south of $50,000 for some time now. Car insurance hikes are being seen everywhere, and with the removal of federal tax credits and the implementation of tariffs on imported cars, it doesn't look like things are getting cheaper any time soon either. One thing that is in favor of the American motorist, though, is the price of gas. While we don't enjoy the cheapest gas in the world, with an average price of $3.50 (May 2025) per gallon, it's much more affordable in the States than it is in many other places across the world.

For instance, did you know that there is a smattering of countries who pay more than $5 per gallon, and even one which pays almost four times what we do in the U.S.? In contrast, some motorists are getting their hands on gas for close to $0.10 per gallon. Here's a breakdown of the most expensive, and indeed the cheapest places in the world, you can buy your gas.

Take yourself back to 2022. The COVID-19 pandemic was in full swing, the Russia-Ukraine conflict had just been announced, and, as a consequence of the latter, gas prices in the U.S. rose to over $5 for the first time in history. Thankfully, prices are down considerably from this peak now, but over in Hong Kong, motorists would thank their lucky stars if gas was available at such prices.

Instead of $5 per gallon, those in Hong Kong are having to shell out a whopping $13 for the stuff — that's almost $4 per gallon more expensive than in Iceland, which holds the number-two spot for highest gas prices. There are numerous reasons why gas is so expensive in Hong Kong, with one of the primary causes being the complete lack of any local oil refineries. Oil companies also blame factors such as transportation, land costs, government rates, and insurance for the sky-high prices in Hong Kong. With that being said, it makes sense that the most popular car over there is the Tesla Model 3 — we very much doubt that Coyote-powered F-150 trucks would be welcome at all with gas at $13 a gallon.

At the other end of the spectrum, we have countries like Libya and Iran, who — as of May 2025 — boast average gas prices of just $0.10 and $0.11 per gallon respectively. Yeah, that's per gallon. In contrast, a gallon's worth of water bottles in Libya will set you back around $0.58, so yeah, it would be cheaper to develop a taste for gasoline, not that we'd recommend it. For a bit more perspective, the current F-150 has an available 36-gallon gas tank. Filling it up in Libya would set you back $3.60, which almost makes it cost-effective to fly out with your gas tank every time it's running on empty just to fill-up.

So, why is gas so cheap over there? In Libya, fuel is heavily subsidized, as Libya holds vast oil reserves and so can produce it cheaply in great quantities. The idea of these subsidies is that the government can make it more affordable for the poverty-stricken folk who reside there.

However, such subsidies have made fuel in Libya a prime target for smugglers. Fuel is hard to come by out there, and despite officially being worth so little, gas station owners will often sell it for multiple times higher due to the demand. It's a similar story in Iran too, where the government spends billions each year subsidizing fuel, yet fuel smuggling runs rife, making it difficult for ordinary people to actually receive the benefit. It's worth mentioning that war with Iran could see U.S. prices for gas soar, as in addition to subsidizing gas for its citizens, the Iranian government could just as easily raise prices for the U.S., or cut off supply completely. 

When looking at gas prices all over the world, a clear pattern emerges. The richer countries pay more for their fuel, while the poorer countries pay less. This makes sense, especially when you take into account that the governments of poorer countries are actively subsidizing fuel to make it more affordable for poverty-stricken communities.

However, there is one exception to the rule — the U.S. Sure, America isn't competing with Libya and the likes in terms of gas prices, but most first world countries are paying double that of American citizens at the pump. There are numerous reasons for this, and one major contributing factor is that, at a federal level, there has been a refusal to raise taxes on gas for over three decades now in the U.S. This, in conjunction with the monumental buying power of the U.S., is how American citizens are able to get their hands on gas for such comparably cheap prices.

Prices, of course, fluctuate hugely within the U.S. itself though, with the differences between the cheapest and most expensive states in which to buy gas being quite dramatic. In the priciest states, namely Washington, California, and Hawaii, gas soars above $4 per gallon, but in the cheapest states, like Texas and Mississippi, Arkansas and Alabama, gas currently sits at around $2.70 per gallon.