petrol

EXPLAINER

At least 145 countries have reported increases in petrol prices since the attacks on Iran by the US and Israel began on February 28.

Since the United States and Israel launched their war on Iran six months ago, petrol prices have risen in at least 145 countries, adding to the burden on consumers worldwide.

The figures are based on data from GlobalPetrolPrices, which tracks fuel prices in 170 countries and territories. Petrol prices in Myanmar rose the most, increasing by 56 percent from $0.77 per litre of 95-octane fuel on February 23 to $1.20 on August 17. Bhutan recorded the next-largest increase at 55 percent, followed by Cuba at 51 percent, the UAE at 50 percent and 48 percent in Nigeria.

In 25 other countries, most of them oil producers with heavily subsidised fuel, prices have either remained unchanged or fallen by single digits.

The table below lists the 145 countries where petrol prices at the pump increased over the past six months.

How higher fuel costs shrink your driving range

Before the war, the US national average for a gallon [3.78 litres] of regular petrol was $2.94. It now costs $4.09, an increase of 39 percent, according to AAA Fuel Prices, which tracks retail fuel prices for the American Automobile Association (AAA).

The extra cost directly affects how far people can travel. Before the war, $50 worth of fuel in the US could take a family sedan roughly 718 km (446 miles). Today, the same amount takes you about 536 km (333 miles) – 183 km less, a 25 percent reduction in driving distance.

That gap varies depending on where you live.

Set your country, car and budget below to see how far your money takes you. If you’re filling up in the US, you can also select a state and fuel grade.

How high oil costs drive up the price of food

Oil prices and food prices move in lockstep, with energy prices affecting every stage of the food supply chain, from the fertilisers used in the fields to the trucks that carry food from field to supermarket shelf.

Rising oil prices also directly impact shipping and the cost of transport.

“The lifeblood of the global economy is transport,” economist David McWilliams told Al Jazeera. “It’s getting stuff from A to B – it’s a logistics problem, a supply chain problem and ultimately transportation is the energy of the global economy.”

In lower-income countries, where populations spend a far greater share of their earnings on food and import large quantities of grain and fertiliser, rising oil prices could rapidly translate into food shortages.

What products are made from oil and gas?

Oil and gas are used for far more than just fuel. They are raw materials for thousands of everyday products.

Plastics, including water bottles, food packaging, phone casings and medical syringes, are all derived from crude oil.

Crude oil is also the hidden ingredient in synthetic fabrics, such as polyester, nylon and acrylic, which are used to make everything from sportswear to carpets. It also underpins the cosmetics industry, as it is used to make products such as petroleum jelly (Vaseline), lipsticks and concealers.

Household items also rely on oil-based ingredients, with laundry detergents, dishwashing liquids and paints all derived from petroleum products.

The global food supply is essentially built on natural gas in the form of fertilisers, used to enhance crop yields and ensure that food production can meet demand.

Gombe, Nigeria – On a weekday morning in Pantami District, Gombe, the streets fill with the familiar rush of motorcycles carrying students, workers and traders across the city. But increasingly, some pass almost silently – a subtle sign of a transport shift driven not by climate policy, but by Nigeria’s soaring fuel prices.

One pedestrian did not realise a motorcycle was behind him until the rider sounded its horn. Unlike the petrol-powered bikes that dominate Nigerian roads, the electric motorcycle moved almost noiselessly and produced no exhaust fumes.

Electric motorcycles are gradually appearing across Gombe as riders seek relief from rising fuel costs following President Bola Tinubu’s removal of Nigeria’s fuel subsidy in May 2023, forcing many to rethink how they travel and earn a living.

The bikes, which typically cost about 1 million naira (about $735), remain out of reach for many households. But those who have made the switch say the savings on fuel and maintenance are significant.

Subsidy shock

Tinubu announced the end of Nigeria’s longstanding petrol subsidy during his inauguration on May 29, 2023, triggering a sharp increase in fuel prices across the country.

In Gombe, petrol now sells for about 1,365 naira ($1) per litre (0.26 gallons), compared with roughly 200 naira (15 cents) before the subsidy was removed. The increase has driven up transport costs and squeezed household budgets across Nigeria.

The economic pressure has coincided with growing concern about the environmental impact of the country’s ageing fleet of petrol-powered motorcycles and vehicles. According to the World Bank, road transport is a major contributor to air pollution in Nigerian cities, with vehicle emissions adding significantly to levels of harmful particulate matter.

A cheaper ride

For Ayuba Abubakar, a farmer and resident of Gombe, the switch to an electric motorcycle was prompted by a friend’s visit earlier this year.

After buying the bike, he rode from Gombe to Kumo and back and was surprised by how little battery power the journey consumed.

“I usually spend the day moving around Gombe without charging,” Ayuba told Al Jazeera. “When I travel to remote areas, I charge it.”

Ayuba said he has been using the bike for about three months and has so far avoided the mechanical problems that often come with petrol-powered motorcycles.

“My charger once burned out because I didn’t use a stabiliser,” he said. “Apart from that, I’ve had no major maintenance costs.”

He estimates that the bike has saved him about 5,000 naira ($3.7) a week in fuel expenses.

“Even with those savings, the price needs to come down for most Nigerians to afford it,” he added.

Ahmed Aminu, another rider in Gombe, told Al Jazeera that he no longer spends money on engine oil, while Yakubu Sule, who also owns an electric motorcycle, told Al Jazeera that he chose it largely because of its quiet operation.

Power constraints

Despite the enthusiasm of early adopters, unreliable electricity remains one of the biggest obstacles to wider use of electric motorcycles.

Nigeria’s electricity supply is notoriously inconsistent, and many households receive only a few hours of power each day. The challenge has become more pronounced under Nigeria’s service-based tariff system, which classifies customers into bands according to the amount of electricity they receive.

For Muhammad Abubakar, chief executive officer of Sustenaa, a clean-energy company, the problem is fundamental.

“If we end up charging these bikes with generators, then what’s the point?” Abubakar told Al Jazeera. “We will just be moving the emissions from the exhaust pipe to the generator pipe, and we are back to square one.”

He argues that solar-powered battery-swap stations are a more realistic solution than relying on riders to charge their motorcycles at home.

Abubakar also warned that Nigeria must plan for battery recycling as electric mobility expands. He called on the government to reduce import duties on electric-bike components, support battery-swap operators, establish recycling standards and integrate electric mobility into existing solar mini-grid projects.

For now, electric motorcycles remain a niche option in Gombe. But as fuel prices remain high and battery-swap infrastructure slowly expands, the quiet motorcycles appearing on the city’s streets may offer a glimpse of how economic pressure is beginning to reshape transport across Nigeria.

“When you look at how many bikes are pumping out smoke daily across Lagos, Kano and Port Harcourt, air pollution levels are alarming,” he said. “Even if we start with a fraction of the commercial bike fleets, the improvement in air quality could become visible relatively quickly.”

United States President Donald Trump has lambasted the nation’s biggest oil and gas giants as Houston, Texas-based Chevron reported record earnings while consumers struggle with soaring petrol prices.

“I don’t like it,” Trump told reporters on Monday in reference to the blockbuster second-quarter earnings, as his war on Iran has kept oil prices high for months.

“Chevron, too much money. ExxonMobil, too much. Too much money.”

Trump’s comments came on the heels of an interview Chevron CEO Mike Wirth gave on the Fox News programme Sunday Morning Futures with Maria Bartiromo. Writing on his Truth Social platform, the US president berated Wirth for not crediting his administration’s efforts to help the oil industry.

“The only thing he [Wirth] conveniently forgot to mention is that, without the genius, foresight, strength, and stability of the TRUMP Administration, the Oil Industry, and our Country itself, would be DEAD!”

Chevron reported its highest quarterly profits in six years on Friday. Adjusted earnings per share came to $6.06, or $12bn, as tensions between the US and Iran strained global oil supply chains in the strategically vital Strait of Hormuz, where roughly one-fifth of the world’s energy supply travelled through before the war, sending prices soaring.

Chevron rewarded its employees. Wirth praised them for their work and said in an email that most workers would receive a bonus equivalent to half their monthly base pay, the Reuters news agency reported, citing an internal email.

Al Jazeera has not been able to independently confirm Reuters’ reporting.

Chevron’s strong earnings come as the company is less reliant on Middle Eastern production operations than its competitors, allowing it to reap the benefits of higher global oil prices during the quarter. Brent crude, the global benchmark for oil prices, was 23 percent higher than in the first three months of the year.

“Being less dependent on the Strait of Hormuz is definitely helping them. It’s also the refining they’re able to do here. The fact that Chevron has less than 5 percent exposure there gives it some protection,” Bill Drolet, executive director, mergers & acquisitions at The Post Oak Group investment bank, told Al Jazeera.

“More than 70 percent of Chevron’s production is concentrated in America, and that’s where it’s making its biggest margins right now.”

Chevron also benefitted from the president’s move to open up oil production in Venezuela after US special forces abducted the country’s president, Nicolas Maduro, in January. Chevron had stayed on in the South American nation even after former President Hugo Chavez nationalised oil production.

Chevron did not respond to Al Jazeera’s request for comment.

Competitors also performed well. ExxonMobil on Friday posted its best quarterly profits in four years, but they fell short of analysts’ expectations. Earnings raked in $9.2bn.

Exxon did not respond to a request for comment.

On Thursday, Valero Energy reported its highest ever second-quarter profit, with net income coming in at $3.7bn as US refiners reap the benefits of tensions choking oil production across the Middle East.

But those benefits have not reached consumers, who are feeling the strain at the petrol pump. Petrol prices are above $4 a gallon (3.78 litres) across the US. The average price for a gallon of petrol is $4.09, down from $4.11 this time last week, but up from $3.82 a month ago, according to the American Automobile Association (AAA), which tracks daily petrol prices.

By comparison, when the US and Israel first struck Iran in late February, the average price was $2.98.

An analysis from Bank of America published in April showed consumers spending as much as 4.2 percent of their income on petrol in March, up from 3.9 percent in 2019. Lower-income earners are hit much harder, with more than 10 percent of households spending more than 10 percent of their monthly income on petrol.

This comes as pressure on the US Strategic Petroleum Reserve continues. The reserves hit their lowest level since 1983 this week, according to the Department of Energy. They fell by 2.8 million barrels over the week to 304.8 million barrels.

Political pushback

The condemnation of the oil industry has come from across the political spectrum.

“A decent industry would say, ‘this was money we didn’t earn, it’s a windfall we get from our cartel pricing scheme.’ Not these corrupt, greedy and grasping rogues,” Democratic Senator Sheldon Whitehouse of Rhode Island wrote in a post on X on Sunday.

But lowering prices might not be as easy. Beyond pressure from consumers, companies across the corporate United States are beholden to a concept called shareholder supremacy. This means that while lowering prices might be in the best interest of pinched consumers, it may not be possible given the legal framework and companies’ fiduciary responsibility to shareholders.

“They’ve [oil companies] got shareholders they’re responsible for. They could reduce share buybacks or dividend payouts, but right now, I don’t see oil companies doing much,” Post Oak Group’s Drolet said.

He said if he were advising a member of Congress or the president, providing relief to consumers might be easiest by suspending the so-called gas tax, which varies by state. In Texas, for example, the gas tax accounts for 20 cents per gallon, while in California, it is 63 cents per gallon.

“From a political standpoint, the best thing our government can do is suspend gas taxes, especially in California. If they put a temporary hold on taxes, that would help everybody get through this challenging time.”

Al Jazeera asked the White House if that policy is on the table, but the press office did not respond.

Heading into the US midterm elections, cost of living remains among the highest concerns for consumers. In a Washington Post/Ipsos poll last month, 54 percent of respondents said that high prices and the economy were a chief concern heading into November.

“They see the price of fuel and net profit for Exxon and Chevron and feel that they are abusing US consumers, especially as US consumers have access to the correct fuel, whereas other areas around the world have shortages [such as Germany, Philippines],” Babak Hafezi, professor of international business at American University, told Al Jazeera.

“The reality is that as the war [On Iran] progresses, the impacts of the lack of supply will create full price and supply shocks.”

Amid Trump’s comments, Chevron’s stock is on the downturn in midday trading, tumbling more than 2 percent from the market open. However, it is up more than 1.1 percent over the last five days.

ExxonMobil is down 0.5 percent for the day and 0.1 percent over the last five days.

US drivers may have to wait until 2027 for gasoline prices to fall below 79 cents per litre, according to Patrick De Haan, Head of Petroleum Analysis at GasBuddy. He says global oil inventories could take more than a year to recover from disruptions linked to the war on Iran.