Dynamic variables are considered a really bad practice.  Hence, I won't be giving a solution that uses them. :)
As @GarrettLinux pointed out, you can easily make a list comprehension that will create a list of lists.  You can then access those lists through indexing (i.e. lst[0], lst[1], etc.)
However, if you want those lists to be named (i.e. var1, var2, etc.), which is what I think you were going for, then you can use a defaultdict from collections.defaultdict:
from collections import defaultdict
dct = defaultdict(list)
for i in xrange(5):
    dct["var{}".format(i+1)]
Demo:
>>> dct
defaultdict(<type 'list'>, {'var5': [], 'var4': [], 'var1': [], 'var3': [], 'var2': []})
>>> dct["var1"]
[]
>>> dct["var1"].append('value')
>>> dct["var1"]
['value']
>>> dct
defaultdict(<type 'list'>, {'var5': [], 'var4': [], 'var1': ['value'], 'var3': [], 'var2': []})
>>>
As you can see, this solution closely mimics the effect of dynamic variables.