Dynamic fuel price pass-through: Evidence from a new global retail fuel price database

Kangni Kpodar and Chadi Abdallah

Energy Economics, 2017, vol. 66, issue C, 303-312

Abstract: We estimate the dynamic effects of crude oil price shocks on retail fuel prices, the pass-through, using the local projection approach of Jordà (2005). Using a novel monthly dataset of retail fuel prices in 162 countries over the period from 2000:1 to 2014:12, we find that: (i) retail gasoline prices respond positively to crude oil price shocks, but the responses vary across regions and income groups; (ii) there is also some variation across country groups in the persistence of the effects of crude oil price shocks on retail gasoline prices; and (iii) declines in crude oil prices lead to smaller effects on retail gasoline prices than increases in crude oil prices, pointing to an asymmetry in the fuel price pass-through.

Keywords: Retail fuel prices; Pass-through; Asymmetry (search for similar items in EconPapers)
JEL-codes: H23 L71 Q48 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:66:y:2017:i:c:p:303-312

DOI: 10.1016/j.eneco.2017.06.017

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