Global Energy Crisis: Rising Costs and Regional Disparities
The ongoing global energy crisis, exacerbated by geopolitical tensions such as the Russian-Ukrainian war and conflicts in the Middle East, has led to significant increases in energy bills worldwide. As winter approaches, families are facing soaring costs for heating, with electricity and gas prices remaining high despite some reductions from their peak levels in late 2022. The transition to renewable energy and the aftermath of the COVID-19 pandemic have further strained the global energy system, making it more vulnerable to shocks.
Most Expensive Countries for Energy in 2024
According to recent reports, European Union countries dominate the list of the most expensive energy bills globally. In June 2024, Ireland topped the list for electricity costs at $0.4164 per kWh, followed by Luxembourg and Austria. Gas prices in the EU also remain the highest, with an average of €0.110 per kWh for household consumers in the first half of 2024. The reliance on fossil fuels and reduced production capacities have contributed to this energy inflation, which is still 30-70% higher than pre-crisis levels.
Cheapest Energy Prices: A Contrast
In stark contrast, several countries, particularly those rich in oil and gas reserves, offer some of the lowest energy prices in the world. Iran, Ethiopia, and Cuba lead the list of the cheapest electricity costs, with rates as low as $0.002 per kWh. Similarly, Libya, Venezuela, and Algeria provide domestic gas at remarkably low prices, reflecting government policies that support consumer pricing amidst global market pressures. Notably, several Arab countries, including Syria and Sudan, feature among the cheapest for both electricity and gas, highlighting regional disparities in energy affordability.
