Domestic Petroleum Product Prices and Subsidies: Recent Developments and Reform Strategies

By David Coady, Taimur Baig, Joseph Ntamatungiro, Amine Mati

March 1, 2007

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David Coady, Taimur Baig, Joseph Ntamatungiro, and Amine Mati. Domestic Petroleum Product Prices and Subsidies: Recent Developments and Reform Strategies, (USA: International Monetary Fund, 2007) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper reviews recent developments in the pass-through of international to domestic petroleum product prices, in the different fuel pricing regimes, and in fuel subsidies in a range of emerging market and developing economies. The main finding of the paper is the limited price pass-through in many countries and the consequent increase in fuel subsidies. The paper proposes that key elements of a successful strategy to contain subsidies should comprise: making subsidies explicit; making pricing mechanisms more robust; combining reductions in subsidies with measures to protect the poorest; using the resulting savings well, and transparency and consultation.

Subject: Commodities, Energy subsidies, Expenditure, Fuel prices, Inflation, Oil, Oil prices, Prices

Keywords: Administered import price, Africa, Country, Energy subsidies, Fiscal policy, Fuel price, Fuel prices, Gasoline price, Gasoline pricing mechanisms price, Government, Inflation, Kerosene price, Liberalized price regime, Oil, Oil price pass-through, Oil prices, Petroleum, Petroleum product price, Price, Price liberalization, Price pass-through, Price signal, Price stabilization scheme, Refinery price, Subsidies, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2007/071
Stock No:

WPIEA2007071
ISBN:

9781451866353
ISSN:

1018-5941

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