A new report by Global Petrol Prices has highlighted sharp volatility in global energy markets nearly 40 days after the outbreak of military conflict involving Iran, the United States, and Israel, underscoring the decisive role of government subsidies and tax policies in shaping consumer prices.

According to data updated to April 6, Kuwait ranks among the most affordable countries worldwide for fuel, placing sixth globally for the lowest diesel prices at approximately $0.37 per liter.

It also ranks fifth globally for gasoline prices at around $0.34 per liter, positioning it among a group of heavily subsidized energy markets led by Libya, Iran, and Venezuela, reports Al-Rai daily.

The report noted that global averages remain significantly higher, with diesel priced at $1.58 per liter and gasoline at $1.48, reflecting the widening gap between subsidized and market-driven economies. In contrast, high-income regions continue to record the steepest costs, with places such as Hong Kong topping global rankings for both fuel types.

Analysts attribute Kuwait’s low pricing structure primarily to sustained government subsidies, which insulate domestic consumers from fluctuations in international crude markets. This trend is consistent across several oil-producing nations, where energy affordability is maintained as part of broader economic and social policy frameworks.

In the liquefied natural gas (LNG) segment, global prices averaged $0.88 per liter, with Algeria emerging as the cheapest market, while Greece recorded the highest rates. Within the Gulf, Saudi Arabia ranked among the lowest-cost producers.

Electricity prices also showed wide disparities globally. The average cost for household consumption stood at $0.172 per kilowatt-hour, while Kuwait ranked among the lower-cost nations at approximately $0.045 per kilowatt-hour, placing it 17th worldwide in affordability.

Business electricity costs followed a similar pattern, with significant variation depending on consumption levels and national pricing policies.

The findings come amid continued disruptions in global energy supply chains, with geopolitical tensions impacting shipping routes and fuel availability. Recent market data indicates that while some price corrections have occurred following ceasefire efforts, supply conditions remain tight and recovery could take months.

Overall, the report underscores a growing divergence in global energy pricing, where subsidy-driven economies like Kuwait continue to provide low-cost fuel and electricity, even as international markets experience sustained volatility.