Fuel Price Subsidies in Gabon: Fiscal Cost and Distributional Impact

October 1, 2006

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Format: Chicago

Daniel Leigh, and Moataz El-Said. Fuel Price Subsidies in Gabon: Fiscal Cost and Distributional Impact, (USA: International Monetary Fund, 2006) accessed September 19, 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

This paper looks at the fiscal cost and distributional impact of implicit fuel price subsidies in Gabon, where fuel prices have remained largely unchanged since 2002. Using estimated implicit import parity prices, we evaluate the total fiscal cost of the subsidies at 3.2 percent of non-oil GDP in 2005-more than total public health expenditures. We also analyze the distribution of the subsidies using household survey data and find that the bulk of the subsidies benefit higher-income households. Finally, we suggest use of a number of existing programs to provide a more targeted and cost-effective means of protecting the real incomes of lower-income households from the effects of energy price increases.

Subject: Consumption, Energy subsidies, Fuel prices, Income, Inflation

Keywords: Fuel price subsidy, Gabon, GDP, Price, WP

Publication Details

Pages:

15
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2006/243
Stock No:

WPIEA2006243
ISBN:

9781451865035
ISSN:

1018-5941

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