{ "title": "Issues in Domestic Petroleum Pricing in Oil-Producing Countries", "publication": "IMF Working Papers, August 1, 2002", "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963", "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963", "overlayPath": "/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963/index.md", "summary": "This paper discusses issues relating to the domestic pricing of petroleum in oil-producing countries. It finds that in most major oil-exporting countries, government policies keep domestic prices below free-market levels, resulting in implicit subsidies that equaled 3.", "sections": [ { "heading": "Summary findings", "content": "- Government policies in most major oil-exporting countries keep domestic petroleum prices below free-market levels.\n- Implicit petroleum subsidies equaled 3.0 percent of GDP, on average, in 1999.\n- Petroleum subsidies are characterized as inefficient and inequitable.\n- Subsidies entail substantial opportunity costs in terms of forgone revenue or productive spending.\n- Petroleum subsidies are procyclical and complicate macroeconomic management.\n- Elimination of petroleum subsidies is often politically difficult." }, { "heading": "Analysis and implications", "content": "- Distributional and efficiency concerns:\n - Subsidies are inefficient and inequitable, implying misallocation of resources and adverse distributional outcomes.\n- Macroeconomic management:\n - Procyclical nature of subsidies complicates macroeconomic policy and stabilization efforts.\n- Fiscal cost:\n - Implicit subsidies represented a significant fiscal burden (3.0 percent of GDP, on average, in 1999)." }, { "heading": "Policy recommendations and reform considerations", "content": "- Subsidy reform is recommended to reduce inefficiency, inequity, and macroeconomic complications.\n- Recognize political economy constraints:\n - Elimination of petroleum subsidies is often politically difficult.\n- Measures to facilitate reform:\n - Countervailing measures and publicity campaigns can help engender support for reform." }, { "heading": "Publication and metadata", "content": "- Title: Issues in Domestic Petroleum Pricing in Oil-Producing Countries\n- Authors: Sanjeev Gupta, Benedict J. Clements, Kevin Fletcher, Gabriela Inchauste\n- Publication date: August 1, 2002\n- Series: Working Paper No. 2002/140\n- Issue: 140\n- Volume: 2002\n- Pages: 31\n- DOI: https://doi.org/10.5089/9781451856132.001\n- ISBN: 9781451856132\n- ISSN: 1018-5941\n- Subjects: Commodities, Consumption, Energy subsidies, Expenditure, Fuel prices, National accounts, Oil, Oil prices, Prices\n- Keywords: Consumption, country, domestic prices, Energy subsidies, excises, fiscal policy, free market price, Fuel prices, Global, government, incidence, max-min price stabilization law, Oil, Oil prices, petroleum, petroleum product price, price, reference price, subsidies, subsidy, subsidy reform, transfer program, world oil prices increase, WP\n\nIMF Working Paper — Views expressed are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.\n\n---\n\n Content in this bundle\n\n- Issues in Domestic Petroleum Pricing in Oil-Producing Countries - WP/02/140\n - Issues in Domestic Petroleum Pricing in Oil-Producing Countries - WP/02/140 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - Issues in Domestic Petroleum Pricing in Oil-Producing Countries - WP/02/140 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963" } ], "bullets": [ "[Markdown version](/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963/index.md)", "[Structured JSON version](/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963/index.json)", "[Bundle manifest](/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963/bundle-manifest.json)", "Authors: Sanjeev Gupta, Benedict J. Clements, Kevin Fletcher, Gabriela Inchauste", "Published: August 1, 2002", "Series: IMF Working Papers", "DOI: https://doi.org/10.5089/9781451856132.001", "Government policies in most major oil-exporting countries keep domestic petroleum prices below free-market levels.", "Implicit petroleum subsidies equaled 3.0 percent of GDP, on average, in 1999.", "Petroleum subsidies are characterized as inefficient and inequitable.", "Subsidies entail substantial opportunity costs in terms of forgone revenue or productive spending.", "Petroleum subsidies are procyclical and complicate macroeconomic management.", "Elimination of petroleum subsidies is often politically difficult.", "Distributional and efficiency concerns:", "Macroeconomic management:", "Fiscal cost:", "Subsidy reform is recommended to reduce inefficiency, inequity, and macroeconomic complications.", "Recognize political economy constraints:", "Measures to facilitate reform:", "Title: Issues in Domestic Petroleum Pricing in Oil-Producing Countries", "Authors: Sanjeev Gupta, Benedict J. Clements, Kevin Fletcher, Gabriela Inchauste", "Publication date: August 1, 2002", "Series: Working Paper No. 2002/140", "Issue: 140", "Volume: 2002", "Pages: 31", "DOI: https://doi.org/10.5089/9781451856132.001", "ISBN: 9781451856132", "ISSN: 1018-5941", "Subjects: Commodities, Consumption, Energy subsidies, Expenditure, Fuel prices, National accounts, Oil, Oil prices, Prices", "Keywords: Consumption, country, domestic prices, Energy subsidies, excises, fiscal policy, free market price, Fuel prices, Global, government, incidence, max-min price stabilization law, Oil, Oil prices, petroleum, petroleum product price, price, reference price, subsidies, subsidy, subsidy reform, transfer program, world oil prices increase, WP", "**Issues in Domestic Petroleum Pricing in Oil-Producing Countries - WP/02/140**" ], "related": [ { "title": "Issues in Domestic Petroleum Pricing in Oil-Producing Countries - WP/02/140", "role": "document", "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp02140.pdf", "summary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp02140.pdf.md", "mime": "text/markdown" }, "binary": { "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2002/_wp02140.pdf", "mime": "application/pdf" } } ], "alternates": { "markdown": "/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963/index.md", "json": "/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963/index.json", "bundleManifest": "/en/publications/wp/issues/2016/12/30/issues-in-domestic-petroleum-pricing-in-oil-producing-countries-15963/bundle-manifest.json" }, "generatedAtUtc": "2026-09-17T06:50:55.455Z" }