## 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](https://www.imf.org/en/publications/wp/issues/2016/12/31/domestic-petroleum-product-prices-and-subsidies-recent-developments-and-reform-strategies-20608)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/domestic-petroleum-product-prices-and-subsidies-recent-developments-and-reform-strategies-20608/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/domestic-petroleum-product-prices-and-subsidies-recent-developments-and-reform-strategies-20608/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/domestic-petroleum-product-prices-and-subsidies-recent-developments-and-reform-strategies-20608/bundle-manifest.json)

## 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

---

## Content in this bundle

- **_wp0771**
  - [_wp0771 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2007/_wp0771.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp0771 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2007/_wp0771.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/domestic-petroleum-product-prices-and-subsidies-recent-developments-and-reform-strategies-20608_