Fossil Fuel Subsidy and Pricing Policies : Recent Developing Country Experience

The steep decline in the world oil price in the last quarter of 2014 slashed fuel price subsidies. Several governments responded by announcing that they would remove subsidies for one or more fuels and move to market-based pricing with full cost re...

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Bibliographic Details
Main Author: Kojima, Masami
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2016
Subjects:
LNG
OIL
GAS
Online Access:http://documents.worldbank.org/curated/en/2016/01/25762644/fossil-fuel-subsidy-pricing-policies-recent-developing-country-experience
http://hdl.handle.net/10986/23631
id okr-10986-23631
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 FUEL SHORTAGE
SPOT PRICE
FUEL SPECIFICATIONS
POWER PLANTS
REFINED PRODUCTS
FOSSIL FUELS
CARBON DIOXIDE
DOMESTIC GAS
RESIDENTIAL CONSUMERS
REFINERY OPERATIONS
ELECTRICITY TARIFF
ENERGY PRICING
HEAT METERS
POWER PRICES
GENERATION
COST OF ELECTRICITY
GASOLINE
GAS IMPORTS
ENERGY PRODUCTS
ETHANOL
EFFICIENCY IMPROVEMENT
PRICE
VOLTAGE
POWER SYSTEM
DOMESTIC NATURAL GAS PRODUCTION
POWER GENERATION PLANT
AVIATION FUEL
LNG
OIL PRICES
PETROLEUM
AIR POLLUTION
OIL
BIOMASS RESOURCES
KEROSENE SUBSIDIES
GAS DEVELOPMENT
OIL COMPANIES
FUEL USE
DOMESTIC SUPPLY
ELECTRIFICATION
POWER GENERATORS
DISTRIBUTION FACILITIES
FUEL PRODUCTS
ALTERNATIVE FUELS
OIL IMPORTS
POWER COMPANY
FUELS
FUEL SWITCHING
FUEL COSTS
ELECTRICITY PRODUCERS
FUEL SUPPLY
GAS COMPANIES
COAL MINING
MINERAL RESOURCES
GAS PROCESSING PLANTS
BALANCE
ELECTRIC POWER
ELECTRICITY
CEMENT
PRICE OF OIL
HYDROPOWER
FUEL BILLS
EVAPORATIVE EMISSIONS
ELECTRICITY GENERATION
FOSSIL FUEL
OIL EXPORTS
POWER_SECTOR
PETROLEUM GAS
IMPORTS OF PETROLEUM
FUEL PRICES
VALUE OF ENERGY
ENERGY USE
NET OIL
SULFUR FUEL OIL
FOSSIL FUELS
TARIFF LEVELS
PETROLEUM SECTOR
FOSSIL FUEL CONSUMPTION
AUTOMOTIVE FUELS
PETROLEUM DIESEL
ENERGY OUTLOOK
OIL REFINERY
TAX REBATE
COAL
DIESEL FUEL
FUEL
CRUDE OIL
FACILITIES
HYDROPOWER GENERATION
SULFUR CONTENT
GAS METERS
PETROLEUM PRODUCTS
OIL EXPORTER
DIESEL
KEROSENE
OIL COST
OIL INDUSTRY
BACKUP POWER
FOSSIL FUEL CONSUMPTION
PIPELINE
APPROACH
EMPLOYMENT
LIQUID FUEL
KILOWATT‐HOUR
POWER SECTORS
PUBLIC UTILITIES
OIL PRICE
TAX EXEMPTION
CEMENT PRODUCTION
GAS TURBINES
DISTRICT HEATING
VEHICLES
ACTIVITIES
OIL COMPANY
OIL OUTPUT
WIND
CLEAN ENERGY
EMISSIONS
GAS PRICES
GAS PRICE
DOMESTIC NATURAL GAS
LIQUID FUELS
CARBON DIOXIDE EMISSIONS
COAL COMPANY
GAS FIELDS
OIL PRICE COLLAPSE
GAS
WHOLESALE PRICE
BARRELS PER DAY
POLLUTANT EMISSIONS
DOMESTIC OIL
OIL CONSUMPTION
OIL PRODUCTION
GAS CONSUMPTION
SAFETY REGULATIONS
TRANSPORTATION FUEL
DISTRICT‐HEATING
ELECTRICITY CONSUMPTION
RESIDUAL FUEL
BIOMASS
GENERATION CAPACITY
OILS
NATURAL GAS PRICES
POWER GENERATION
NATURAL GAS PRODUCTION
PRICES OF FUELS
POWER SECTOR
GAS PRODUCTION
OPTIONS
WATER
SOLID FUELS
ELECTRICITY SUPPLY
POLLUTION
GROSS DOMESTIC PRODUCT
FUEL CONSUMPTION
GAS‐CONSUMPTION
GASOLINE PRICES
REGULAR GASOLINE
SULFUR
POWER PRODUCERS
GASOLINE PRICE
PETROLEUM PRICE
BORDER TRADE
ENERGY CONSUMPTION
POWER GENERATION CAPACITY
TAX RATE
HEAT
FUEL TYPES
WHOLESALE PRICES
COST OF GAS
UTILITIES
HEAT METERING
POWER
GAS SUPPLY
GAS SUPPLIES
HEAVY FUEL OIL
ELECTRICITY TARIFFS
COAL‐MINING
OIL PRODUCERS
ENERGY BILLS
DOMESTIC CRUDE OIL
UTILITY BILLS
RESIDUAL FUEL OIL
ENERGY PRICES
HYDROCARBONS
TURBINES
TAX REVENUE
ENERGY EFFICIENCY
ELECTRICITY PRICES
DIESEL FUEL PRICES
CRUDE OIL PRICE
NATURAL GAS
TAX CREDITS
HEAT TARIFF
GAS INDUSTRY
PRICE OF GAS
FEEDSTOCK
OIL EXPORTERS
INVESTMENT
TRANSPORTATION FUELS
TARIFF
FUEL OIL
AVAILABILITY
RURAL ELECTRIFICATION
INVESTMENTS
ETHANOL IN GASOLINE
CYCLE POWER GENERATION PLANT
HEAVY RELIANCE
RENEWABLE ENERGY
NATURAL GAS CONSUMPTION
PRICE OF GASOLINE
FOSSIL
GRID ELECTRICITY
PRICES
GAS EXPLORATION
ENERGY
spellingShingle FUEL SHORTAGE
SPOT PRICE
FUEL SPECIFICATIONS
POWER PLANTS
REFINED PRODUCTS
FOSSIL FUELS
CARBON DIOXIDE
DOMESTIC GAS
RESIDENTIAL CONSUMERS
REFINERY OPERATIONS
ELECTRICITY TARIFF
ENERGY PRICING
HEAT METERS
POWER PRICES
GENERATION
COST OF ELECTRICITY
GASOLINE
GAS IMPORTS
ENERGY PRODUCTS
ETHANOL
EFFICIENCY IMPROVEMENT
PRICE
VOLTAGE
POWER SYSTEM
DOMESTIC NATURAL GAS PRODUCTION
POWER GENERATION PLANT
AVIATION FUEL
LNG
OIL PRICES
PETROLEUM
AIR POLLUTION
OIL
BIOMASS RESOURCES
KEROSENE SUBSIDIES
GAS DEVELOPMENT
OIL COMPANIES
FUEL USE
DOMESTIC SUPPLY
ELECTRIFICATION
POWER GENERATORS
DISTRIBUTION FACILITIES
FUEL PRODUCTS
ALTERNATIVE FUELS
OIL IMPORTS
POWER COMPANY
FUELS
FUEL SWITCHING
FUEL COSTS
ELECTRICITY PRODUCERS
FUEL SUPPLY
GAS COMPANIES
COAL MINING
MINERAL RESOURCES
GAS PROCESSING PLANTS
BALANCE
ELECTRIC POWER
ELECTRICITY
CEMENT
PRICE OF OIL
HYDROPOWER
FUEL BILLS
EVAPORATIVE EMISSIONS
ELECTRICITY GENERATION
FOSSIL FUEL
OIL EXPORTS
POWER_SECTOR
PETROLEUM GAS
IMPORTS OF PETROLEUM
FUEL PRICES
VALUE OF ENERGY
ENERGY USE
NET OIL
SULFUR FUEL OIL
FOSSIL FUELS
TARIFF LEVELS
PETROLEUM SECTOR
FOSSIL FUEL CONSUMPTION
AUTOMOTIVE FUELS
PETROLEUM DIESEL
ENERGY OUTLOOK
OIL REFINERY
TAX REBATE
COAL
DIESEL FUEL
FUEL
CRUDE OIL
FACILITIES
HYDROPOWER GENERATION
SULFUR CONTENT
GAS METERS
PETROLEUM PRODUCTS
OIL EXPORTER
DIESEL
KEROSENE
OIL COST
OIL INDUSTRY
BACKUP POWER
FOSSIL FUEL CONSUMPTION
PIPELINE
APPROACH
EMPLOYMENT
LIQUID FUEL
KILOWATT‐HOUR
POWER SECTORS
PUBLIC UTILITIES
OIL PRICE
TAX EXEMPTION
CEMENT PRODUCTION
GAS TURBINES
DISTRICT HEATING
VEHICLES
ACTIVITIES
OIL COMPANY
OIL OUTPUT
WIND
CLEAN ENERGY
EMISSIONS
GAS PRICES
GAS PRICE
DOMESTIC NATURAL GAS
LIQUID FUELS
CARBON DIOXIDE EMISSIONS
COAL COMPANY
GAS FIELDS
OIL PRICE COLLAPSE
GAS
WHOLESALE PRICE
BARRELS PER DAY
POLLUTANT EMISSIONS
DOMESTIC OIL
OIL CONSUMPTION
OIL PRODUCTION
GAS CONSUMPTION
SAFETY REGULATIONS
TRANSPORTATION FUEL
DISTRICT‐HEATING
ELECTRICITY CONSUMPTION
RESIDUAL FUEL
BIOMASS
GENERATION CAPACITY
OILS
NATURAL GAS PRICES
POWER GENERATION
NATURAL GAS PRODUCTION
PRICES OF FUELS
POWER SECTOR
GAS PRODUCTION
OPTIONS
WATER
SOLID FUELS
ELECTRICITY SUPPLY
POLLUTION
GROSS DOMESTIC PRODUCT
FUEL CONSUMPTION
GAS‐CONSUMPTION
GASOLINE PRICES
REGULAR GASOLINE
SULFUR
POWER PRODUCERS
GASOLINE PRICE
PETROLEUM PRICE
BORDER TRADE
ENERGY CONSUMPTION
POWER GENERATION CAPACITY
TAX RATE
HEAT
FUEL TYPES
WHOLESALE PRICES
COST OF GAS
UTILITIES
HEAT METERING
POWER
GAS SUPPLY
GAS SUPPLIES
HEAVY FUEL OIL
ELECTRICITY TARIFFS
COAL‐MINING
OIL PRODUCERS
ENERGY BILLS
DOMESTIC CRUDE OIL
UTILITY BILLS
RESIDUAL FUEL OIL
ENERGY PRICES
HYDROCARBONS
TURBINES
TAX REVENUE
ENERGY EFFICIENCY
ELECTRICITY PRICES
DIESEL FUEL PRICES
CRUDE OIL PRICE
NATURAL GAS
TAX CREDITS
HEAT TARIFF
GAS INDUSTRY
PRICE OF GAS
FEEDSTOCK
OIL EXPORTERS
INVESTMENT
TRANSPORTATION FUELS
TARIFF
FUEL OIL
AVAILABILITY
RURAL ELECTRIFICATION
INVESTMENTS
ETHANOL IN GASOLINE
CYCLE POWER GENERATION PLANT
HEAVY RELIANCE
RENEWABLE ENERGY
NATURAL GAS CONSUMPTION
PRICE OF GASOLINE
FOSSIL
GRID ELECTRICITY
PRICES
GAS EXPLORATION
ENERGY
Kojima, Masami
Fossil Fuel Subsidy and Pricing Policies : Recent Developing Country Experience
geographic_facet Middle East and North Africa
Jordan
Morocco
relation Policy Research Working Paper;No. 7531
description The steep decline in the world oil price in the last quarter of 2014 slashed fuel price subsidies. Several governments responded by announcing that they would remove subsidies for one or more fuels and move to market-based pricing with full cost recovery. Other governments took advantage of low world prices to increase taxes and other charges on fuels. However, the decision to move to cost recovery and market prices, ending budgetary support, has not been implemented consistently across countries. Policy announcements have varied in the way they were communicated and the level of detail provided. When petroleum product prices bounced back during the first half of 2015, some reforming governments failed to raise prices correspondingly. Recent experience suggests that regular and frequent price adjustments, however small—as in Jordan and Morocco—help the government and consumers to get accustomed to fluctuations in world fuel prices and exchange rates. By contrast, freezing prices, even for a few months—for socioeconomic considerations or because the needed adjustments are small enough to be absorbed—increases the risk of reversion to ad hoc pricing and price subsidies. The more formally the decision to move to market-based pricing is communicated, the more public new price announcements, and the higher the frequency of price changes, the more likely the implementation of the announced pricing policy reform will be sustained.
format Working Paper
author Kojima, Masami
author_facet Kojima, Masami
author_sort Kojima, Masami
title Fossil Fuel Subsidy and Pricing Policies : Recent Developing Country Experience
title_short Fossil Fuel Subsidy and Pricing Policies : Recent Developing Country Experience
title_full Fossil Fuel Subsidy and Pricing Policies : Recent Developing Country Experience
title_fullStr Fossil Fuel Subsidy and Pricing Policies : Recent Developing Country Experience
title_full_unstemmed Fossil Fuel Subsidy and Pricing Policies : Recent Developing Country Experience
title_sort fossil fuel subsidy and pricing policies : recent developing country experience
publisher World Bank, Washington, DC
publishDate 2016
url http://documents.worldbank.org/curated/en/2016/01/25762644/fossil-fuel-subsidy-pricing-policies-recent-developing-country-experience
http://hdl.handle.net/10986/23631
_version_ 1764454381842857984
spelling okr-10986-236312021-04-23T14:04:16Z Fossil Fuel Subsidy and Pricing Policies : Recent Developing Country Experience Kojima, Masami FUEL SHORTAGE SPOT PRICE FUEL SPECIFICATIONS POWER PLANTS REFINED PRODUCTS FOSSIL FUELS CARBON DIOXIDE DOMESTIC GAS RESIDENTIAL CONSUMERS REFINERY OPERATIONS ELECTRICITY TARIFF ENERGY PRICING HEAT METERS POWER PRICES GENERATION COST OF ELECTRICITY GASOLINE GAS IMPORTS ENERGY PRODUCTS ETHANOL EFFICIENCY IMPROVEMENT PRICE VOLTAGE POWER SYSTEM DOMESTIC NATURAL GAS PRODUCTION POWER GENERATION PLANT AVIATION FUEL LNG OIL PRICES PETROLEUM AIR POLLUTION OIL BIOMASS RESOURCES KEROSENE SUBSIDIES GAS DEVELOPMENT OIL COMPANIES FUEL USE DOMESTIC SUPPLY ELECTRIFICATION POWER GENERATORS DISTRIBUTION FACILITIES FUEL PRODUCTS ALTERNATIVE FUELS OIL IMPORTS POWER COMPANY FUELS FUEL SWITCHING FUEL COSTS ELECTRICITY PRODUCERS FUEL SUPPLY GAS COMPANIES COAL MINING MINERAL RESOURCES GAS PROCESSING PLANTS BALANCE ELECTRIC POWER ELECTRICITY CEMENT PRICE OF OIL HYDROPOWER FUEL BILLS EVAPORATIVE EMISSIONS ELECTRICITY GENERATION FOSSIL FUEL OIL EXPORTS POWER_SECTOR PETROLEUM GAS IMPORTS OF PETROLEUM FUEL PRICES VALUE OF ENERGY ENERGY USE NET OIL SULFUR FUEL OIL FOSSIL FUELS TARIFF LEVELS PETROLEUM SECTOR FOSSIL FUEL CONSUMPTION AUTOMOTIVE FUELS PETROLEUM DIESEL ENERGY OUTLOOK OIL REFINERY TAX REBATE COAL DIESEL FUEL FUEL CRUDE OIL FACILITIES HYDROPOWER GENERATION SULFUR CONTENT GAS METERS PETROLEUM PRODUCTS OIL EXPORTER DIESEL KEROSENE OIL COST OIL INDUSTRY BACKUP POWER FOSSIL FUEL CONSUMPTION PIPELINE APPROACH EMPLOYMENT LIQUID FUEL KILOWATT‐HOUR POWER SECTORS PUBLIC UTILITIES OIL PRICE TAX EXEMPTION CEMENT PRODUCTION GAS TURBINES DISTRICT HEATING VEHICLES ACTIVITIES OIL COMPANY OIL OUTPUT WIND CLEAN ENERGY EMISSIONS GAS PRICES GAS PRICE DOMESTIC NATURAL GAS LIQUID FUELS CARBON DIOXIDE EMISSIONS COAL COMPANY GAS FIELDS OIL PRICE COLLAPSE GAS WHOLESALE PRICE BARRELS PER DAY POLLUTANT EMISSIONS DOMESTIC OIL OIL CONSUMPTION OIL PRODUCTION GAS CONSUMPTION SAFETY REGULATIONS TRANSPORTATION FUEL DISTRICT‐HEATING ELECTRICITY CONSUMPTION RESIDUAL FUEL BIOMASS GENERATION CAPACITY OILS NATURAL GAS PRICES POWER GENERATION NATURAL GAS PRODUCTION PRICES OF FUELS POWER SECTOR GAS PRODUCTION OPTIONS WATER SOLID FUELS ELECTRICITY SUPPLY POLLUTION GROSS DOMESTIC PRODUCT FUEL CONSUMPTION GAS‐CONSUMPTION GASOLINE PRICES REGULAR GASOLINE SULFUR POWER PRODUCERS GASOLINE PRICE PETROLEUM PRICE BORDER TRADE ENERGY CONSUMPTION POWER GENERATION CAPACITY TAX RATE HEAT FUEL TYPES WHOLESALE PRICES COST OF GAS UTILITIES HEAT METERING POWER GAS SUPPLY GAS SUPPLIES HEAVY FUEL OIL ELECTRICITY TARIFFS COAL‐MINING OIL PRODUCERS ENERGY BILLS DOMESTIC CRUDE OIL UTILITY BILLS RESIDUAL FUEL OIL ENERGY PRICES HYDROCARBONS TURBINES TAX REVENUE ENERGY EFFICIENCY ELECTRICITY PRICES DIESEL FUEL PRICES CRUDE OIL PRICE NATURAL GAS TAX CREDITS HEAT TARIFF GAS INDUSTRY PRICE OF GAS FEEDSTOCK OIL EXPORTERS INVESTMENT TRANSPORTATION FUELS TARIFF FUEL OIL AVAILABILITY RURAL ELECTRIFICATION INVESTMENTS ETHANOL IN GASOLINE CYCLE POWER GENERATION PLANT HEAVY RELIANCE RENEWABLE ENERGY NATURAL GAS CONSUMPTION PRICE OF GASOLINE FOSSIL GRID ELECTRICITY PRICES GAS EXPLORATION ENERGY The steep decline in the world oil price in the last quarter of 2014 slashed fuel price subsidies. Several governments responded by announcing that they would remove subsidies for one or more fuels and move to market-based pricing with full cost recovery. Other governments took advantage of low world prices to increase taxes and other charges on fuels. However, the decision to move to cost recovery and market prices, ending budgetary support, has not been implemented consistently across countries. Policy announcements have varied in the way they were communicated and the level of detail provided. When petroleum product prices bounced back during the first half of 2015, some reforming governments failed to raise prices correspondingly. Recent experience suggests that regular and frequent price adjustments, however small—as in Jordan and Morocco—help the government and consumers to get accustomed to fluctuations in world fuel prices and exchange rates. By contrast, freezing prices, even for a few months—for socioeconomic considerations or because the needed adjustments are small enough to be absorbed—increases the risk of reversion to ad hoc pricing and price subsidies. The more formally the decision to move to market-based pricing is communicated, the more public new price announcements, and the higher the frequency of price changes, the more likely the implementation of the announced pricing policy reform will be sustained. 2016-01-12T22:40:08Z 2016-01-12T22:40:08Z 2016-01 Working Paper http://documents.worldbank.org/curated/en/2016/01/25762644/fossil-fuel-subsidy-pricing-policies-recent-developing-country-experience http://hdl.handle.net/10986/23631 English en_US Policy Research Working Paper;No. 7531 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 Middle East and North Africa Jordan Morocco