Cheapest Petrol in the World: The Government of Iran reserves a large part of crude oil for domestic use and processes it and makes it available to the public at a very low price.

Iran Cheapest Petrol: Petrol and diesel prices are skyrocketing in most countries of the world, but there is one country where driving a car is very cheap and economical. This country is none other than Iran. Here, the price of one liter of petrol is only $0.029 i.e. about Rs 2.50. Let us know why it is that Iran is the country selling the cheapest petrol in the world.

What is the reason for the cheap price of petrol in Iran?

Petrol prices in Iran are the cheapest in the world and the biggest reason behind this is heavy government subsidy. The Government of Iran reserves a large part of crude oil for domestic use and processes it and makes it available to the public at a very low price. Apart from this, Iran has huge oil reserves and its own refinery capacity, which reduces dependence on imports and reduces production costs significantly.

This is the big reason

Iran's oil export is limited due to international sanctions, so the government gives priority to domestic consumption and provides fuel at cheap rates. After Iran, Libya sells petrol at $0.031 per liter, Venezuela $0.035 per liter, Angola $0.328 per liter, Egypt $0.339 per liter and Algeria $0.340 per liter, which has been possible in all countries due to government subsidy or oil production in some form or the other.

However, cheap petrol also has many negative effects. Heavy subsidy puts a burden on the government budget, which can lead to cuts in sectors like education and health. Not only this, smuggling of cheap fuel also becomes a big problem due to expensive fuel in neighboring countries. Also, cheap petrol leads to increased vehicle usage, which adds to air pollution and carbon emissions.

How cheap is the price compared to India?

If we talk about India, the price of petrol here is more than 100 per liter, while in Iran it is around 2.50 per liter. This difference is about 40 times, which shows how the government has been able to reduce the price of petrol to this extent through subsidy and policy.