Domestic Petroleum Product Prices and Subsidies: Recent Developments and Reform Strategies
IMF Working Papers, March 1, 2007
Source details
- Canonical URL
- Domestic Petroleum Product Prices and Subsidies: Recent Developments and Reform Strategies
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Bibliographic details
- Authors: David Coady, Taimur Baig, Joseph Ntamatungiro, Amine Mati
- Published: March 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451866353.001
Main findings
- Reviews recent developments in the pass-through of international to domestic petroleum product prices, in different fuel pricing regimes, and in fuel subsidies in a range of emerging market and developing economies.
- Main finding: the limited price pass-through in many countries and the consequent increase in fuel subsidies.
- Emphasizes the role of pricing regimes and policy settings in shaping domestic price responses to international oil price movements.
Policy recommendations and elements of a successful subsidy-containment strategy
- Make subsidies explicit.
- Make pricing mechanisms more robust.
- Combine reductions in subsidies with measures to protect the poorest.
- Use the resulting savings well.
- Ensure transparency and consultation.
Subject matter and keywords (as listed)
- Subject: Commodities, Energy subsidies, Expenditure, Fuel prices, Inflation, Oil, Oil prices, Prices
- Keywords include: 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