Issues in domestic petroleum pricing in oil-producing countries /

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 3.0 percent of GDP, on average, i...

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Bibliographic Details
Other Authors: Gupta, Sanjeev, Clements, Benedict, Fletcher, Kevin, Inchauste, Gabriela
Format: Book
Language:English
Published: Washington, D.C. : International Monetary Fund, 2002
Series:IMF working paper ; no. WP/02/140
Subjects:
Online Access:http://www.imf.org/external/pubs/ft/wp/2002/wp02140.pdf

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520 3 |a 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 3.0 percent of GDP, on average, in 1999. Moreover, the paper argues, these petroleum subsidies are inefficient and inequitable-entailing substantial opportunity costs in terms of forgone revenue or productive spending-and also procyclical, complicating macroeconomic management. Nonetheless, the elimination of petroleum subsidies is often politically difficult, although countervailing measures and publicity campaigns can help engender support for reform. 
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700 1 |9 3142  |a Clements, Benedict 
700 1 |9 3145  |a Fletcher, Kevin 
700 1 |9 1258  |a Inchauste, Gabriela 
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