Drawing a Roadmap for Oil Pricing Reform
In 2011, the median oil imports rose to 5 percent of gross domestic product for net importers. In the past several years, many governments have not passed through the world oil price increases to consumers fully. As a sign of divergent pricing poli...
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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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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/05/17733366/drawing-roadmap-oil-pricing-reform http://hdl.handle.net/10986/15590 |
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okr-10986-15590 |
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| recordtype |
oai_dc |
| 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 |
ADVERSE CONSEQUENCES ADVERSE EFFECTS AGRICULTURE AIR POLLUTION APPROACH ATMOSPHERIC PRESSURE AVAILABILITY AVERAGE PRICE AVERAGE PRICES BALANCE BARRELS PER DAY BASE YEAR BASKET OF GOODS BENCHMARK BLACK MARKET BLACK MARKETS BURNING FUEL CASH FLOW COLLUSION COMMERCIALIZATION COMMODITIES COMMODITY COMMODITY PRICE COMPETITIVE MARKET COMPETITIVE MARKETS CONFIDENTIALITY CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONTROLLED PRICES CORPORATE TAX COST REDUCTION CRUDE OIL CRUDE OIL PRICE CURRENCY CURRENCY APPRECIATION CURRENT ACCOUNT BALANCE DECISION MAKING DELIVERY MECHANISM DEREGULATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT AGENCY DEVELOPMENT POLICY DIESEL DIESEL FUEL DIVIDENDS DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC OIL DOMESTIC PRICE DOMESTIC PRICES ECONOMIC DEVELOPMENT ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT ELASTICITY ELASTICITY OF DEMAND ELECTRICITY ETHANOL EXCESS PROFITS EXCHANGE RATE EXPENDITURE EXPENDITURES FAIR FAIR TRADING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CONTRACT FINANCIAL CRISIS FOOD PRICES FOSSIL FOSSIL FUEL FUEL FUEL CONSUMPTION FUEL OIL FUEL PRICES FUEL SUPPLY FUEL SWITCHING FUEL TYPE FUELS FUTURE PRICE FUTURE PRICES FUTURES GAS GASOLINE GASOLINE PRICES GDP GDP PER CAPITA GLOBAL MARKET GLOBALIZATION GOOD GOVERNANCE GOVERNMENT BUDGET GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT INVOLVEMENT GROSS DOMESTIC PRODUCT HYDROPOWER HYDROPOWER GENERATION INCOME INCOME GROUPS INCOME TAX INEFFICIENCY INFLATION INSTITUTIONAL CAPACITY INSURANCE INTERNATIONAL MARKET INTERNATIONAL TRADE KEROSENE KEROSENE CONSUMPTION LABOR MARKET LIQUID FUELS LOCAL CURRENCY LOW-INCOME COUNTRIES MACROECONOMIC PERFORMANCE MARKET CONCENTRATION MARKET CONDITIONS MARKET DISTORTIONS MARKET INCENTIVES MARKET PRICES MARKET STRUCTURE MERIT GOOD MIDDLE-INCOME COUNTRIES MONOPOLIES MONOPOLY NATURAL DISASTERS NATURAL GAS NATURAL GAS CONSUMPTION NATURAL GAS PRICES NATURAL GAS PRODUCTION NATURAL MONOPOLIES NET OIL OIL OIL COMPANIES OIL COMPANY OIL CONSUMPTION OIL DEMAND OIL EXPORTERS OIL EXPORTS OIL IMPORTS OIL INDUSTRY OIL MARKETS OIL PRICE OIL PRICES OIL PRICING OIL PRODUCERS OIL PRODUCING OIL PRODUCING COUNTRIES OIL PRODUCTION OIL PRODUCTS OIL REFINING OIL SUPPLY OPPORTUNITY COST OPPORTUNITY COSTS OUTPUT PERSONAL INFORMATION PETROLEUM PETROLEUM GAS PETROLEUM INDUSTRY POLITICAL ECONOMY POLITICAL SYSTEM POLLUTION POVERTY ALLEVIATION POWER POWER GENERATION POWER SECTOR POWER SHORTAGES PRICE ADJUSTMENTS PRICE ADVANTAGE PRICE BAND PRICE BANDS PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE COMPETITION PRICE CONTROL PRICE CONTROLS PRICE DECREASES PRICE EFFECT PRICE INCREASE PRICE INCREASES PRICE LEVEL PRICE LEVELS PRICE MOVEMENTS PRICE OF GASOLINE PRICE OF OIL PRICE REGULATION PRICE RISKS PRICE SPIKES PRICE STABILITY PRICE STABILIZATION PRICE SUBSIDIES PRICE SUBSIDY PRICE TRENDS PRICE VOLATILITY PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRICING POLICY REFORM PRICING REFORM PROFIT MARGINS PUBLIC UTILITIES REFINED PRODUCTS REGRESSION ANALYSIS REGULAR GASOLINE REMOTE AREAS RETAIL RETAIL PRICES RETAILING SAFETY NET SAFETY NETS SALE SALES SAVINGS SINGLE MARKET SMART CARD SMART CARDS SOCIAL PROTECTION SOCIAL SAFETY NETS SPOT PRICE SPOT PRICES STABLE PRICES SUPPLIERS SUPPLY CHAIN SUSTAINABLE ENERGY TARIFF STRUCTURE TAX TAX EXPENDITURES TAX RATES TAX REVENUE TAXATION TRACK RECORD TRADITIONAL FUELS TRANSACTION COST TRANSPARENCY UNEMPLOYMENT VEHICLES WAGES WEALTH WHOLESALE GASOLINE WHOLESALE PRICES WORLD MARKET |
| spellingShingle |
ADVERSE CONSEQUENCES ADVERSE EFFECTS AGRICULTURE AIR POLLUTION APPROACH ATMOSPHERIC PRESSURE AVAILABILITY AVERAGE PRICE AVERAGE PRICES BALANCE BARRELS PER DAY BASE YEAR BASKET OF GOODS BENCHMARK BLACK MARKET BLACK MARKETS BURNING FUEL CASH FLOW COLLUSION COMMERCIALIZATION COMMODITIES COMMODITY COMMODITY PRICE COMPETITIVE MARKET COMPETITIVE MARKETS CONFIDENTIALITY CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONTROLLED PRICES CORPORATE TAX COST REDUCTION CRUDE OIL CRUDE OIL PRICE CURRENCY CURRENCY APPRECIATION CURRENT ACCOUNT BALANCE DECISION MAKING DELIVERY MECHANISM DEREGULATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT AGENCY DEVELOPMENT POLICY DIESEL DIESEL FUEL DIVIDENDS DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC OIL DOMESTIC PRICE DOMESTIC PRICES ECONOMIC DEVELOPMENT ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT ELASTICITY ELASTICITY OF DEMAND ELECTRICITY ETHANOL EXCESS PROFITS EXCHANGE RATE EXPENDITURE EXPENDITURES FAIR FAIR TRADING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CONTRACT FINANCIAL CRISIS FOOD PRICES FOSSIL FOSSIL FUEL FUEL FUEL CONSUMPTION FUEL OIL FUEL PRICES FUEL SUPPLY FUEL SWITCHING FUEL TYPE FUELS FUTURE PRICE FUTURE PRICES FUTURES GAS GASOLINE GASOLINE PRICES GDP GDP PER CAPITA GLOBAL MARKET GLOBALIZATION GOOD GOVERNANCE GOVERNMENT BUDGET GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT INVOLVEMENT GROSS DOMESTIC PRODUCT HYDROPOWER HYDROPOWER GENERATION INCOME INCOME GROUPS INCOME TAX INEFFICIENCY INFLATION INSTITUTIONAL CAPACITY INSURANCE INTERNATIONAL MARKET INTERNATIONAL TRADE KEROSENE KEROSENE CONSUMPTION LABOR MARKET LIQUID FUELS LOCAL CURRENCY LOW-INCOME COUNTRIES MACROECONOMIC PERFORMANCE MARKET CONCENTRATION MARKET CONDITIONS MARKET DISTORTIONS MARKET INCENTIVES MARKET PRICES MARKET STRUCTURE MERIT GOOD MIDDLE-INCOME COUNTRIES MONOPOLIES MONOPOLY NATURAL DISASTERS NATURAL GAS NATURAL GAS CONSUMPTION NATURAL GAS PRICES NATURAL GAS PRODUCTION NATURAL MONOPOLIES NET OIL OIL OIL COMPANIES OIL COMPANY OIL CONSUMPTION OIL DEMAND OIL EXPORTERS OIL EXPORTS OIL IMPORTS OIL INDUSTRY OIL MARKETS OIL PRICE OIL PRICES OIL PRICING OIL PRODUCERS OIL PRODUCING OIL PRODUCING COUNTRIES OIL PRODUCTION OIL PRODUCTS OIL REFINING OIL SUPPLY OPPORTUNITY COST OPPORTUNITY COSTS OUTPUT PERSONAL INFORMATION PETROLEUM PETROLEUM GAS PETROLEUM INDUSTRY POLITICAL ECONOMY POLITICAL SYSTEM POLLUTION POVERTY ALLEVIATION POWER POWER GENERATION POWER SECTOR POWER SHORTAGES PRICE ADJUSTMENTS PRICE ADVANTAGE PRICE BAND PRICE BANDS PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE COMPETITION PRICE CONTROL PRICE CONTROLS PRICE DECREASES PRICE EFFECT PRICE INCREASE PRICE INCREASES PRICE LEVEL PRICE LEVELS PRICE MOVEMENTS PRICE OF GASOLINE PRICE OF OIL PRICE REGULATION PRICE RISKS PRICE SPIKES PRICE STABILITY PRICE STABILIZATION PRICE SUBSIDIES PRICE SUBSIDY PRICE TRENDS PRICE VOLATILITY PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRICING POLICY REFORM PRICING REFORM PROFIT MARGINS PUBLIC UTILITIES REFINED PRODUCTS REGRESSION ANALYSIS REGULAR GASOLINE REMOTE AREAS RETAIL RETAIL PRICES RETAILING SAFETY NET SAFETY NETS SALE SALES SAVINGS SINGLE MARKET SMART CARD SMART CARDS SOCIAL PROTECTION SOCIAL SAFETY NETS SPOT PRICE SPOT PRICES STABLE PRICES SUPPLIERS SUPPLY CHAIN SUSTAINABLE ENERGY TARIFF STRUCTURE TAX TAX EXPENDITURES TAX RATES TAX REVENUE TAXATION TRACK RECORD TRADITIONAL FUELS TRANSACTION COST TRANSPARENCY UNEMPLOYMENT VEHICLES WAGES WEALTH WHOLESALE GASOLINE WHOLESALE PRICES WORLD MARKET Kojima, Masami Drawing a Roadmap for Oil Pricing Reform |
| relation |
Policy Research working paper;no. WPS 6450 |
| description |
In 2011, the median oil imports rose to
5 percent of gross domestic product for net importers. In
the past several years, many governments have not passed
through the world oil price increases to consumers fully. As
a sign of divergent pricing policies, the retail prices of
gasoline, diesel, and cooking gas in January 2013 varied by
a factor of 190, 250, and 70, respectively, across
developing countries. Policies to keep oil product prices
low to benefit the economy and protect the poor have had a
number of unintended negative consequences, including
flourishing corruption in the oil sector and entrenchment of
monopoly operators or inefficient firms through which
subsidies are channeled, stifling competition and raising
costs. The path to market-based pricing depends on the
starting conditions: the gap between current and
market-based price levels, the level of public awareness
about the extent of departure from market prices, the degree
of market concentration and competition in downstream oil,
the subsidy delivery mechanism where subsidies are provided,
the robustness of social service delivery, and the perceived
credibility of the government. The evidence presented in
this paper suggests that pricing reform often does not have
a clear end and should instead be viewed as a continuous
process of adjustment and search for mechanisms that take
into account the country's institutions and political
system, and the oil sector's market structure,
infrastructure, and history. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Kojima, Masami |
| author_facet |
Kojima, Masami |
| author_sort |
Kojima, Masami |
| title |
Drawing a Roadmap for Oil Pricing Reform |
| title_short |
Drawing a Roadmap for Oil Pricing Reform |
| title_full |
Drawing a Roadmap for Oil Pricing Reform |
| title_fullStr |
Drawing a Roadmap for Oil Pricing Reform |
| title_full_unstemmed |
Drawing a Roadmap for Oil Pricing Reform |
| title_sort |
drawing a roadmap for oil pricing reform |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2013/05/17733366/drawing-roadmap-oil-pricing-reform http://hdl.handle.net/10986/15590 |
| _version_ |
1764429507064758272 |
| spelling |
okr-10986-155902021-04-23T14:03:19Z Drawing a Roadmap for Oil Pricing Reform Kojima, Masami ADVERSE CONSEQUENCES ADVERSE EFFECTS AGRICULTURE AIR POLLUTION APPROACH ATMOSPHERIC PRESSURE AVAILABILITY AVERAGE PRICE AVERAGE PRICES BALANCE BARRELS PER DAY BASE YEAR BASKET OF GOODS BENCHMARK BLACK MARKET BLACK MARKETS BURNING FUEL CASH FLOW COLLUSION COMMERCIALIZATION COMMODITIES COMMODITY COMMODITY PRICE COMPETITIVE MARKET COMPETITIVE MARKETS CONFIDENTIALITY CONSUMER PRICE CONSUMER PRICE INDEX CONSUMERS CONTROLLED PRICES CORPORATE TAX COST REDUCTION CRUDE OIL CRUDE OIL PRICE CURRENCY CURRENCY APPRECIATION CURRENT ACCOUNT BALANCE DECISION MAKING DELIVERY MECHANISM DEREGULATION DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPMENT AGENCY DEVELOPMENT POLICY DIESEL DIESEL FUEL DIVIDENDS DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC OIL DOMESTIC PRICE DOMESTIC PRICES ECONOMIC DEVELOPMENT ECONOMIES OF SCALE EFFICIENCY IMPROVEMENT ELASTICITY ELASTICITY OF DEMAND ELECTRICITY ETHANOL EXCESS PROFITS EXCHANGE RATE EXPENDITURE EXPENDITURES FAIR FAIR TRADING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CONTRACT FINANCIAL CRISIS FOOD PRICES FOSSIL FOSSIL FUEL FUEL FUEL CONSUMPTION FUEL OIL FUEL PRICES FUEL SUPPLY FUEL SWITCHING FUEL TYPE FUELS FUTURE PRICE FUTURE PRICES FUTURES GAS GASOLINE GASOLINE PRICES GDP GDP PER CAPITA GLOBAL MARKET GLOBALIZATION GOOD GOVERNANCE GOVERNMENT BUDGET GOVERNMENT INTERVENTION GOVERNMENT INTERVENTIONS GOVERNMENT INVOLVEMENT GROSS DOMESTIC PRODUCT HYDROPOWER HYDROPOWER GENERATION INCOME INCOME GROUPS INCOME TAX INEFFICIENCY INFLATION INSTITUTIONAL CAPACITY INSURANCE INTERNATIONAL MARKET INTERNATIONAL TRADE KEROSENE KEROSENE CONSUMPTION LABOR MARKET LIQUID FUELS LOCAL CURRENCY LOW-INCOME COUNTRIES MACROECONOMIC PERFORMANCE MARKET CONCENTRATION MARKET CONDITIONS MARKET DISTORTIONS MARKET INCENTIVES MARKET PRICES MARKET STRUCTURE MERIT GOOD MIDDLE-INCOME COUNTRIES MONOPOLIES MONOPOLY NATURAL DISASTERS NATURAL GAS NATURAL GAS CONSUMPTION NATURAL GAS PRICES NATURAL GAS PRODUCTION NATURAL MONOPOLIES NET OIL OIL OIL COMPANIES OIL COMPANY OIL CONSUMPTION OIL DEMAND OIL EXPORTERS OIL EXPORTS OIL IMPORTS OIL INDUSTRY OIL MARKETS OIL PRICE OIL PRICES OIL PRICING OIL PRODUCERS OIL PRODUCING OIL PRODUCING COUNTRIES OIL PRODUCTION OIL PRODUCTS OIL REFINING OIL SUPPLY OPPORTUNITY COST OPPORTUNITY COSTS OUTPUT PERSONAL INFORMATION PETROLEUM PETROLEUM GAS PETROLEUM INDUSTRY POLITICAL ECONOMY POLITICAL SYSTEM POLLUTION POVERTY ALLEVIATION POWER POWER GENERATION POWER SECTOR POWER SHORTAGES PRICE ADJUSTMENTS PRICE ADVANTAGE PRICE BAND PRICE BANDS PRICE CEILINGS PRICE CHANGE PRICE CHANGES PRICE COMPETITION PRICE CONTROL PRICE CONTROLS PRICE DECREASES PRICE EFFECT PRICE INCREASE PRICE INCREASES PRICE LEVEL PRICE LEVELS PRICE MOVEMENTS PRICE OF GASOLINE PRICE OF OIL PRICE REGULATION PRICE RISKS PRICE SPIKES PRICE STABILITY PRICE STABILIZATION PRICE SUBSIDIES PRICE SUBSIDY PRICE TRENDS PRICE VOLATILITY PRICING MECHANISMS PRICING POLICIES PRICING POLICY PRICING POLICY REFORM PRICING REFORM PROFIT MARGINS PUBLIC UTILITIES REFINED PRODUCTS REGRESSION ANALYSIS REGULAR GASOLINE REMOTE AREAS RETAIL RETAIL PRICES RETAILING SAFETY NET SAFETY NETS SALE SALES SAVINGS SINGLE MARKET SMART CARD SMART CARDS SOCIAL PROTECTION SOCIAL SAFETY NETS SPOT PRICE SPOT PRICES STABLE PRICES SUPPLIERS SUPPLY CHAIN SUSTAINABLE ENERGY TARIFF STRUCTURE TAX TAX EXPENDITURES TAX RATES TAX REVENUE TAXATION TRACK RECORD TRADITIONAL FUELS TRANSACTION COST TRANSPARENCY UNEMPLOYMENT VEHICLES WAGES WEALTH WHOLESALE GASOLINE WHOLESALE PRICES WORLD MARKET In 2011, the median oil imports rose to 5 percent of gross domestic product for net importers. In the past several years, many governments have not passed through the world oil price increases to consumers fully. As a sign of divergent pricing policies, the retail prices of gasoline, diesel, and cooking gas in January 2013 varied by a factor of 190, 250, and 70, respectively, across developing countries. Policies to keep oil product prices low to benefit the economy and protect the poor have had a number of unintended negative consequences, including flourishing corruption in the oil sector and entrenchment of monopoly operators or inefficient firms through which subsidies are channeled, stifling competition and raising costs. The path to market-based pricing depends on the starting conditions: the gap between current and market-based price levels, the level of public awareness about the extent of departure from market prices, the degree of market concentration and competition in downstream oil, the subsidy delivery mechanism where subsidies are provided, the robustness of social service delivery, and the perceived credibility of the government. The evidence presented in this paper suggests that pricing reform often does not have a clear end and should instead be viewed as a continuous process of adjustment and search for mechanisms that take into account the country's institutions and political system, and the oil sector's market structure, infrastructure, and history. 2013-09-04T18:05:03Z 2013-09-04T18:05:03Z 2013-05 http://documents.worldbank.org/curated/en/2013/05/17733366/drawing-roadmap-oil-pricing-reform http://hdl.handle.net/10986/15590 English en_US Policy Research working paper;no. WPS 6450 Policy Research Working Paper;No. 6450 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 |