Oil Price Risks and Pump Price Adjustments
Between 1999 and 2008, world oil prices more than quadrupled in real terms. For oil importers, vulnerability to oil price increases, defined as the share of gross domestic product spent on net oil imports, rose considerably. Considering medians, lo...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/10/16831268/oil-price-risks-pump-price-adjustments http://hdl.handle.net/10986/12062 |
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okr-10986-120622021-04-23T14:02:59Z Oil Price Risks and Pump Price Adjustments Kojima, Masami APPROACH AUTOMOTIVE DIESEL AVERAGE PRICE AVERAGE PRICES BALANCE BARREL BIOGAS BLACK MARKET COMMERCIAL ENERGY COMMERCIAL ENERGY CONSUMPTION CONSUMPTION OF OIL CRUDE OIL CRUDE OIL PRICES DEMAND MANAGEMENT DIESEL DOMESTIC MARKET DOMESTIC OIL DOMESTIC OIL PRODUCTION EFFICIENCY IMPROVEMENT ELECTRICITY ENERGY CONSERVATION ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY INFORMATION ADMINISTRATION ENERGY PRICES ENERGY USE FUEL FUEL CONSUMPTION FUEL OIL FUEL PRICE FUEL PRICES FUEL PRICING FUEL QUALITY FUEL USE FUELS GAS GASOLINE GASOLINE PRICE GASOLINE PRICES GROSS DOMESTIC PRODUCT HIGH ENERGY INTENSITY HIGH-SULFUR HIGHER OIL PRICES IMPORT TERMINALS INCOME INTERNATIONAL ENERGY AGENCY INTERNATIONAL MARKET INVENTORIES INVENTORY KEROSENE LIQUEFIED PETROLEUM GAS MARKET PRICES MARKETING MONTHLY AVERAGE PRICES NET OIL OIL OIL COMPANIES OIL CONSUMPTION OIL EXPORTER OIL EXPORTERS OIL EXPORTING OIL EXPORTING COUNTRIES OIL EXPORTS OIL IMPORT OIL IMPORTER OIL IMPORTERS OIL IMPORTS OIL MARKETS OIL PRICE OIL PRICES OIL PRICING OIL PRICING POLICY OIL PRODUCERS OIL PRODUCT PRICES OIL PRODUCTS OIL SECTOR OIL USE PER CAPITA INCOME PETROLEUM PETROLEUM FUELS PETROLEUM GAS PETROLEUM SECTOR PIPELINE PIPELINE TRANSPORT POWER POWER GENERATION PRICE ADJUSTMENTS PRICE CHANGES PRICE COMPETITION PRICE CONTROL PRICE EFFECT PRICE FREEZE PRICE INCREASES PRICE LEVELS PRICE OF OIL PRICE SUBSIDIES PRICE VOLATILITY PRICING POLICIES PURCHASING REFINED PRODUCTS REFINERIES REFINERY REGULAR GASOLINE RETAIL RETAIL PRICE RETAIL PRICES SALE SOURCE OF ENERGY SPOT PRICES STORAGE FACILITIES SUBSTITUTE SULFUR SULFUR CONTENT SUPPLY CHAIN SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TRANSPORT COSTS WORLD MARKET WORLD OIL WORLD OIL PRICES Between 1999 and 2008, world oil prices more than quadrupled in real terms. For oil importers, vulnerability to oil price increases, defined as the share of gross domestic product spent on net oil imports, rose considerably. Considering medians, low-income countries had the highest vulnerability in 2008 and the highest increase in vulnerability between 1999 and 2008. When changes in vulnerability were decomposed into several contributing factors, more than two-thirds of 170 countries studied were found to have offset the increase in the value of oil consumption by reducing the oil intensity of gross domestic product. Oil intensity fell in more than half the countries in every income group and in every region of the world, driven by falling energy intensity and, to a lesser extent, the oil share of energy. This study also examines the degree of pass-through to consumers of increases in world prices of gasoline, diesel, kerosene, and liquefied petroleum gas between January 2009 and January 2012, when oil prices in nominal U.S. dollars more than doubled. Retail fuel prices varied by two orders of magnitude in 2012, and oil-exporting countries were far less likely to pass on price increases. Gasoline had the highest pass-through, followed by diesel, liquefied petroleum gas, and kerosene. The median pass-through increased with income for gasoline, diesel, and kerosene, but was highest in low-income countries for liquefied petroleum gas. Despite divergent pricing policies, the pass-through coefficients of different fuels were strongly positively correlated, suggesting that the degrees to which domestic prices tracked world prices were comparable for the four fuels in many countries. 2013-01-03T17:47:23Z 2013-01-03T17:47:23Z 2012-10 http://documents.worldbank.org/curated/en/2012/10/16831268/oil-price-risks-pump-price-adjustments http://hdl.handle.net/10986/12062 English en_US Policy Research Working Paper; No. 6227 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
APPROACH AUTOMOTIVE DIESEL AVERAGE PRICE AVERAGE PRICES BALANCE BARREL BIOGAS BLACK MARKET COMMERCIAL ENERGY COMMERCIAL ENERGY CONSUMPTION CONSUMPTION OF OIL CRUDE OIL CRUDE OIL PRICES DEMAND MANAGEMENT DIESEL DOMESTIC MARKET DOMESTIC OIL DOMESTIC OIL PRODUCTION EFFICIENCY IMPROVEMENT ELECTRICITY ENERGY CONSERVATION ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY INFORMATION ADMINISTRATION ENERGY PRICES ENERGY USE FUEL FUEL CONSUMPTION FUEL OIL FUEL PRICE FUEL PRICES FUEL PRICING FUEL QUALITY FUEL USE FUELS GAS GASOLINE GASOLINE PRICE GASOLINE PRICES GROSS DOMESTIC PRODUCT HIGH ENERGY INTENSITY HIGH-SULFUR HIGHER OIL PRICES IMPORT TERMINALS INCOME INTERNATIONAL ENERGY AGENCY INTERNATIONAL MARKET INVENTORIES INVENTORY KEROSENE LIQUEFIED PETROLEUM GAS MARKET PRICES MARKETING MONTHLY AVERAGE PRICES NET OIL OIL OIL COMPANIES OIL CONSUMPTION OIL EXPORTER OIL EXPORTERS OIL EXPORTING OIL EXPORTING COUNTRIES OIL EXPORTS OIL IMPORT OIL IMPORTER OIL IMPORTERS OIL IMPORTS OIL MARKETS OIL PRICE OIL PRICES OIL PRICING OIL PRICING POLICY OIL PRODUCERS OIL PRODUCT PRICES OIL PRODUCTS OIL SECTOR OIL USE PER CAPITA INCOME PETROLEUM PETROLEUM FUELS PETROLEUM GAS PETROLEUM SECTOR PIPELINE PIPELINE TRANSPORT POWER POWER GENERATION PRICE ADJUSTMENTS PRICE CHANGES PRICE COMPETITION PRICE CONTROL PRICE EFFECT PRICE FREEZE PRICE INCREASES PRICE LEVELS PRICE OF OIL PRICE SUBSIDIES PRICE VOLATILITY PRICING POLICIES PURCHASING REFINED PRODUCTS REFINERIES REFINERY REGULAR GASOLINE RETAIL RETAIL PRICE RETAIL PRICES SALE SOURCE OF ENERGY SPOT PRICES STORAGE FACILITIES SUBSTITUTE SULFUR SULFUR CONTENT SUPPLY CHAIN SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TRANSPORT COSTS WORLD MARKET WORLD OIL WORLD OIL PRICES |
| spellingShingle |
APPROACH AUTOMOTIVE DIESEL AVERAGE PRICE AVERAGE PRICES BALANCE BARREL BIOGAS BLACK MARKET COMMERCIAL ENERGY COMMERCIAL ENERGY CONSUMPTION CONSUMPTION OF OIL CRUDE OIL CRUDE OIL PRICES DEMAND MANAGEMENT DIESEL DOMESTIC MARKET DOMESTIC OIL DOMESTIC OIL PRODUCTION EFFICIENCY IMPROVEMENT ELECTRICITY ENERGY CONSERVATION ENERGY CONSUMPTION ENERGY EFFICIENCY ENERGY INFORMATION ADMINISTRATION ENERGY PRICES ENERGY USE FUEL FUEL CONSUMPTION FUEL OIL FUEL PRICE FUEL PRICES FUEL PRICING FUEL QUALITY FUEL USE FUELS GAS GASOLINE GASOLINE PRICE GASOLINE PRICES GROSS DOMESTIC PRODUCT HIGH ENERGY INTENSITY HIGH-SULFUR HIGHER OIL PRICES IMPORT TERMINALS INCOME INTERNATIONAL ENERGY AGENCY INTERNATIONAL MARKET INVENTORIES INVENTORY KEROSENE LIQUEFIED PETROLEUM GAS MARKET PRICES MARKETING MONTHLY AVERAGE PRICES NET OIL OIL OIL COMPANIES OIL CONSUMPTION OIL EXPORTER OIL EXPORTERS OIL EXPORTING OIL EXPORTING COUNTRIES OIL EXPORTS OIL IMPORT OIL IMPORTER OIL IMPORTERS OIL IMPORTS OIL MARKETS OIL PRICE OIL PRICES OIL PRICING OIL PRICING POLICY OIL PRODUCERS OIL PRODUCT PRICES OIL PRODUCTS OIL SECTOR OIL USE PER CAPITA INCOME PETROLEUM PETROLEUM FUELS PETROLEUM GAS PETROLEUM SECTOR PIPELINE PIPELINE TRANSPORT POWER POWER GENERATION PRICE ADJUSTMENTS PRICE CHANGES PRICE COMPETITION PRICE CONTROL PRICE EFFECT PRICE FREEZE PRICE INCREASES PRICE LEVELS PRICE OF OIL PRICE SUBSIDIES PRICE VOLATILITY PRICING POLICIES PURCHASING REFINED PRODUCTS REFINERIES REFINERY REGULAR GASOLINE RETAIL RETAIL PRICE RETAIL PRICES SALE SOURCE OF ENERGY SPOT PRICES STORAGE FACILITIES SUBSTITUTE SULFUR SULFUR CONTENT SUPPLY CHAIN SUSTAINABLE DEVELOPMENT SUSTAINABLE ENERGY TRANSPORT COSTS WORLD MARKET WORLD OIL WORLD OIL PRICES Kojima, Masami Oil Price Risks and Pump Price Adjustments |
| relation |
Policy Research Working Paper; No. 6227 |
| description |
Between 1999 and 2008, world oil prices
more than quadrupled in real terms. For oil importers,
vulnerability to oil price increases, defined as the share
of gross domestic product spent on net oil imports, rose
considerably. Considering medians, low-income countries had
the highest vulnerability in 2008 and the highest increase
in vulnerability between 1999 and 2008. When changes in
vulnerability were decomposed into several contributing
factors, more than two-thirds of 170 countries studied were
found to have offset the increase in the value of oil
consumption by reducing the oil intensity of gross domestic
product. Oil intensity fell in more than half the countries
in every income group and in every region of the world,
driven by falling energy intensity and, to a lesser extent,
the oil share of energy. This study also examines the degree
of pass-through to consumers of increases in world prices of
gasoline, diesel, kerosene, and liquefied petroleum gas
between January 2009 and January 2012, when oil prices in
nominal U.S. dollars more than doubled. Retail fuel prices
varied by two orders of magnitude in 2012, and oil-exporting
countries were far less likely to pass on price increases.
Gasoline had the highest pass-through, followed by diesel,
liquefied petroleum gas, and kerosene. The median
pass-through increased with income for gasoline, diesel, and
kerosene, but was highest in low-income countries for
liquefied petroleum gas. Despite divergent pricing policies,
the pass-through coefficients of different fuels were
strongly positively correlated, suggesting that the degrees
to which domestic prices tracked world prices were
comparable for the four fuels in many countries. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kojima, Masami |
| author_facet |
Kojima, Masami |
| author_sort |
Kojima, Masami |
| title |
Oil Price Risks and Pump Price Adjustments |
| title_short |
Oil Price Risks and Pump Price Adjustments |
| title_full |
Oil Price Risks and Pump Price Adjustments |
| title_fullStr |
Oil Price Risks and Pump Price Adjustments |
| title_full_unstemmed |
Oil Price Risks and Pump Price Adjustments |
| title_sort |
oil price risks and pump price adjustments |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/10/16831268/oil-price-risks-pump-price-adjustments http://hdl.handle.net/10986/12062 |
| _version_ |
1764418890603954176 |