Picodi analysis team examined the change in petrol prices in the first half of 2021 compared to the previous year and counted how many litres of petrol Nigerians can buy for the average wage.
Increase of prices on petrol stations
The first half of 2021 was characterised by the gradual defrosting of the economy and an increase in petrol prices compared to the first half of 2020. In African countries, the highest price spikes were noted in Nigeria (+28.3%), Kenya (+18.1%), and South Africa (+12.1%).
In Nigeria, according to the Numbeo data, the average monthly net salary amounts to ₦71,942.16. It means that an average Nigerian can buy 431 litres of petrol for the average monthly wage (4th place). In the previous year, Nigerians could buy 539 litres of petrol for the average wage. The opposite trend was noted only in Egypt and Tunisia, where the average year to year petrol prices slightly decreased.
Petrol Index 2021
In African countries, Algerians fill up petrol the cheapest – in this country, 1 litre of petrol costs $0.34. South Africa has the highest prices at $1.14 per 1 litre. In Nigeria, the average petrol price in the first half of 2021 was ₦166.80 or $0.42, which means it placed 2nd out of 7 considered countries.
This year, we checked again how many litres of petrol can be bought for the average wage in various African countries.
For the third year in a row, the undefeated leader of the ranking is South Africa with 1,237 litres of petrol. Algeria and Kenya complete the podium with 742 and 437 litres respectively.
Lower in the ranking were countries such as Tunisia (414 litres), or Egypt (401 litres). Zambia took the last place with 214 litres.
Among 104 researched countries, the lowest petrol price was noted in Algeria ($0.34 per litre), and the highest price – in Hong Kong ($2.44 per litre).
In the global purchasing power ranking, the Gulf countries are consistently on the podium:
- Qatar – 6,532 litres;
- Saudi Arabia – 5,170 litres;
- Kuwait – 5,158 litres.
Americans can buy 4,723 litres of petrol for the average wage, Australians – 4,128 litres, Canadians – 2,616 litres, and Russians – 938 litres.
The worst situation was noted in Cuba. In this country, 26 litres of petrol can be bought for the average wage (2 litres less than in the previous year). Only a little better were Tajikistan and Zambia, with 188 and 214 litres.
It is also worth looking at Venezuela. This country struggles with an unstable economic situation, yet maintained last year’s limits on petrol purchases. Each citizen can buy 120 litres of petrol for about $0.002 per litre. Once the limit is exceeded, the price of petrol increases to $0.50 per litre.
According to our calculations, the average wage in this country allows you to buy 230 litres of petrol (120 litres of subsidised and 110 litres in full price) which is 82 litres more than last year.
Petrol Index is an annual ranking of petrol prices to wages ratio, conducted by Picodi since 2019. This report uses the average net monthly wages according to the latest available data provided by offices for national statistics or relevant ministries. In some countries, where official wage statistics are not available, we used information from Numbeo.
The average prices for the first half of 2021 in 104 countries are based on data from globalpetrolprices.com and other local sources. In order to obtain the number of litres, we divided the average wage by the average price of 1 litre of petrol. For currency conversion, we used the Google Finance average exchange rate for the last 90 days.