Cheapest Energy Prices in the World

Cheapest Energy Prices in the World (2026 Guide)

Where you’ll find the most affordable electricity and gas globally — and why it matters As energy costs soar in much of Europe and North America, millions of people around the world are asking the same question: where are energy prices cheapest in the world? Whether you’re planning to travel, move abroad, or simply curious about global markets, understanding electricity and gas costs across countries offers fascinating insights into economic policy, natural resources and living standards.

In this comprehensive guide, we explore the world’s lowest energy prices in 2026, the factors driving those rates, how they compare by region, and what it means for consumers and businesses.

Why Energy Prices Vary So Much Across Countries

Before we delve into the cheapest nations, it’s important to understand why energy costs vary so dramatically worldwide. Key factors include:

Natural resources: Countries rich in oil, gas or hydroelectric power often enjoy lower domestic energy costs.
Government subsidies: Many governments deliberately keep domestic energy tariffs low to support households and industry.
Taxation and regulation: Heavy taxes and green levies can significantly increase retail prices.
Market liberalization: Competitive electricity markets often deliver better prices for consumers.

These influences mean that energy in one country might cost a fraction of what it does just a few borders away.

Top Countries with the Cheapest Electricity Prices

When it comes to global electricity prices per kilowatt-hour (kWh), several nations stand out for their extremely low rates — often below a few cents per kWh.

1. Iran – The World’s Cheapest Electricity

Iran offers some of the lowest residential electricity costs anywhere on Earth — as little as $0.002 (0.2 cents) per kWh. That makes it the undisputed global leader for affordable power, largely due to heavy subsidies and abundant fossil fuel resources.

2. Syria and Other Subsidized Markets

Syria follows closely with electricity prices often under $0.005 per kWh, also driven by state-controlled pricing and subsidies. Similarly, countries such as Ethiopia, Sudan and Libya regularly report rates under $0.01 per kWh thanks to government support and local resource availability.

3. Other Affordable Countries

Other nations with notably low prices include:

Kyrgyzstan and Angola, with prices in the single-digit cent range
Oman and Egypt, where subsidized domestic energy keeps costs low
Uzbekistan and Zambia, which benefit from local generation and pricing structures

These rates are significantly below the global average electricity price, which generally sits around $0.15–0.16 per kWh when averaged internationally.

Cheapest Electricity in Europe (and Regional Trends)

Even within Europe, where energy prices are typically higher, some countries buck the trend:

Turkey routinely ranks as one of the most affordable in the region, with average residential electricity prices around $0.044 per kWh.
Hungary and Ukraine also have below-average European electricity costs, largely due to different energy mixes and lower taxes.
By contrast, many Western European states — such as Germany and Ireland — remain among the priciest in the world due to taxes, infrastructure costs and regulatory levies.

Natural Gas: The Low-Cost Countries

Electricity isn’t the only metric worth considering. Natural gas prices vary just as dramatically from place to place.

Lowest Household Gas Prices

According to recent global data:

Iran again tops the list, with household gas prices around $0.001 per kWh — effectively close to free for everyday users.
Algeria, Belarus, Russia and Egypt also rank among the cheapest due to resource abundance and state support.

Business Gas Costs

For industrial and commercial users, some of the cheapest natural gas prices are found in Argentina and Algeria, keeping manufacturing and heavy industry costs relatively low.

Comparing Regions: Which Areas Have Cheapest Energy?

Energy prices aren’t spread evenly. Some regions consistently outperform others.

Asia and the Middle East

Due to oil and gas production — plus long histories of subsidy programmes — many Asian and Middle Eastern countries exhibit low electricity and gas rates for consumers. This includes nations such as Iran, Kuwait and Bahrain.

Africa

In Africa, prices vary widely but countries like Ethiopia and Sudan often show extremely low costs driven by hydropower and fossil fuels.

North America and Europe

In contrast, North America tends to have moderate prices, but still above the cheapest global rates. Europe, especially Western Europe, features some of the highest energy prices in the world because of taxes, import costs and regulatory frameworks.

Why Cheap Energy Prices Matter

Low energy costs have profound economic and social implications:

1. Lower Living Costs

Affordable electricity and gas reduce household expenses, making food, heating and appliances more affordable for families.

2. Industrial Competitiveness

Manufacturing and heavy industry depend heavily on energy. Lower rates can boost productivity and export potential.

3. Attraction for Investment

Countries with low energy costs often attract foreign investment, particularly in energy-intensive sectors like metals, chemicals and data centres.

4. Policy Choices and Subsidies

While subsidies can make energy cheap for consumers, they may strain government budgets and discourage energy efficiency or renewable investments.

The Future of Global Energy Costs

Looking ahead, trends in technology, renewables and geopolitics are reshaping energy markets:

Renewables like solar and wind continue to drop in cost, which may reduce prices over time — but infrastructure and storage remain challenging.
Electric vehicle expansion and electrification of heating could increase electricity demand, affecting pricing dynamics.

Despite these changes, countries with abundant resources and strong government support are likely to remain among the cheapest globally for energy well into the next decade.

Conclusion: Where Are Energy Prices Lowest in 2026?

In summary, the cheapest energy prices in the world are clustered in countries that either:

Have vast natural resources
Maintain heavy subsidies
Or operate state-controlled energy systems

Iran leads the world for both electricity and gas affordability, with other low-cost markets like Syria, Sudan, Ethiopia, Turkey and parts of North Africa and Central Asia not far behind. By contrast, Western Europe and parts of North America continue to face comparatively high prices.

Understanding these dynamics helps consumers, policymakers and investors anticipate future trends in global energy markets — and highlights how different economic choices shape our daily cost of living.