Ah, $2 gas. That’s a distant memory for American motorists. In fact, gas sat below $2 a gallon in the U.S. in 2004, although averages did get pretty close again in 2020. Supply constraints during the pandemic, the Russian invasion of Ukraine, and the situation with Iran, and by extension the Strait of Hormuz, have all contributed to taking that near-$2-per-gallon price we saw in 2020 and swelling it to the latest reported average of $4.65, according to Global Petrol Prices.
Interestingly though, despite the aforementioned bad news in the world of oil, which are global issues rather than U.S.-exclusive matters, there are still no fewer than 8 countries out there paying less for gas — far less, in some cases — than $2 per gallon. We’ve covered why gas prices vary so much across the country, but the story is different on a global scale.
Those 8 countries, in order from cheapest to most expensive gas, are Libya, Iran, Venezuela, Angola, Kuwait, Algeria, Turkmenistan, and Egypt. Respective prices per gallon as of October 5th, 2026 are $0.088, $0.108, $0.132, $1.237, $1.284, $1.323, $1.621, and $1.738. That’s right: while Jalopnik readers are having to think about budgeting differently to afford current gas prices, those in Libya are paying just $0.088 per gallon, almost 53 times less than those in the U.S.
As it happens, gas isn’t naturally cheap in these countries; it’s typically heavily subsidized by those in power. In Libya alone, about $7 billion is spent annually on fuel subsidies, whereas in Iran, subsidies see motorists paying around $0.047 per gallon for the first 15 they use in a month, with the next 26 gallons coming in at $0.094 per gallon. Anything north of 26 gallons per month comes in at a wallet-busting $0.15 per gallon.
Of course, it also helps that many of those 8 countries have significant oil reserves. Iran accounts for almost a quarter of all MIddle East oil reserves, Kuwait boasts around 6% of the world’s oil reserves, and Venezuela has the world’s largest oil reserves. That’s one of the main differences between the cheapest and most expensive countries to buy gas; proximity to oil generally helps.
One might think this is all great news for motorists, but in truth, such cheap gas is often linked to chaos and disruption. Up to 30% of that subsidized Libyan gas is smuggled out of the country, and when Iran tried to introduce price increases back in 2019, there was nationwide upset, and more than 300 citizens lost their lives.