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

David Coady, Taimur Baig, Joseph Ntamatungiro and Amine Mati

No 2007/071, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; price; country; government; fuel price; fiscal policy; petroleum; subsidies; price pass-through; liberalized price regime; petroleum product price; kerosene price; administered import price; gasoline pricing mechanisms price; gasoline price; oil price pass-through; refinery price; price signal; price liberalization; price stabilization scheme; Fuel prices; Oil prices; Inflation; Energy subsidies; Oil; Africa (search for similar items in EconPapers)
Pages: 24
Date: 2007-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (53)

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