Kojima, Masami2013-09-042013-09-042013-05https://hdl.handle.net/10986/15590In 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.en-USCC BY 3.0 IGOADVERSE CONSEQUENCESADVERSE EFFECTSAGRICULTUREAIR POLLUTIONAPPROACHATMOSPHERIC PRESSUREAVAILABILITYAVERAGE PRICEAVERAGE PRICESBALANCEBARRELS PER DAYBASE YEARBASKET OF GOODSBENCHMARKBLACK MARKETBLACK MARKETSBURNING FUELCASH FLOWCOLLUSIONCOMMERCIALIZATIONCOMMODITIESCOMMODITYCOMMODITY PRICECOMPETITIVE MARKETCOMPETITIVE MARKETSCONFIDENTIALITYCONSUMER PRICECONSUMER PRICE INDEXCONSUMERSCONTROLLED PRICESCORPORATE TAXCOST REDUCTIONCRUDE OILCRUDE OIL PRICECURRENCYCURRENCY APPRECIATIONCURRENT ACCOUNT BALANCEDECISION MAKINGDELIVERY MECHANISMDEREGULATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT AGENCYDEVELOPMENT POLICYDIESELDIESEL FUELDIVIDENDSDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC OILDOMESTIC PRICEDOMESTIC PRICESECONOMIC DEVELOPMENTECONOMIES OF SCALEEFFICIENCY IMPROVEMENTELASTICITYELASTICITY OF DEMANDELECTRICITYETHANOLEXCESS PROFITSEXCHANGE RATEEXPENDITUREEXPENDITURESFAIRFAIR TRADINGFEDERAL RESERVEFEDERAL RESERVE BANKFINANCIAL CONTRACTFINANCIAL CRISISFOOD PRICESFOSSILFOSSIL FUELFUELFUEL CONSUMPTIONFUEL OILFUEL PRICESFUEL SUPPLYFUEL SWITCHINGFUEL TYPEFUELSFUTURE PRICEFUTURE PRICESFUTURESGASGASOLINEGASOLINE PRICESGDPGDP PER CAPITAGLOBAL MARKETGLOBALIZATIONGOOD GOVERNANCEGOVERNMENT BUDGETGOVERNMENT INTERVENTIONGOVERNMENT INTERVENTIONSGOVERNMENT INVOLVEMENTGROSS DOMESTIC PRODUCTHYDROPOWERHYDROPOWER GENERATIONINCOMEINCOME GROUPSINCOME TAXINEFFICIENCYINFLATIONINSTITUTIONAL CAPACITYINSURANCEINTERNATIONAL MARKETINTERNATIONAL TRADEKEROSENEKEROSENE CONSUMPTIONLABOR MARKETLIQUID FUELSLOCAL CURRENCYLOW-INCOME COUNTRIESMACROECONOMIC PERFORMANCEMARKET CONCENTRATIONMARKET CONDITIONSMARKET DISTORTIONSMARKET INCENTIVESMARKET PRICESMARKET STRUCTUREMERIT GOODMIDDLE-INCOME COUNTRIESMONOPOLIESMONOPOLYNATURAL DISASTERSNATURAL GASNATURAL GAS CONSUMPTIONNATURAL GAS PRICESNATURAL GAS PRODUCTIONNATURAL MONOPOLIESNET OILOILOIL COMPANIESOIL COMPANYOIL CONSUMPTIONOIL DEMANDOIL EXPORTERSOIL EXPORTSOIL IMPORTSOIL INDUSTRYOIL MARKETSOIL PRICEOIL PRICESOIL PRICINGOIL PRODUCERSOIL PRODUCINGOIL PRODUCING COUNTRIESOIL PRODUCTIONOIL PRODUCTSOIL REFININGOIL SUPPLYOPPORTUNITY COSTOPPORTUNITY COSTSOUTPUTPERSONAL INFORMATIONPETROLEUMPETROLEUM GASPETROLEUM INDUSTRYPOLITICAL ECONOMYPOLITICAL SYSTEMPOLLUTIONPOVERTY ALLEVIATIONPOWERPOWER GENERATIONPOWER SECTORPOWER SHORTAGESPRICE ADJUSTMENTSPRICE ADVANTAGEPRICE BANDPRICE BANDSPRICE CEILINGSPRICE CHANGEPRICE CHANGESPRICE COMPETITIONPRICE CONTROLPRICE CONTROLSPRICE DECREASESPRICE EFFECTPRICE INCREASEPRICE INCREASESPRICE LEVELPRICE LEVELSPRICE MOVEMENTSPRICE OF GASOLINEPRICE OF OILPRICE REGULATIONPRICE RISKSPRICE SPIKESPRICE STABILITYPRICE STABILIZATIONPRICE SUBSIDIESPRICE SUBSIDYPRICE TRENDSPRICE VOLATILITYPRICING MECHANISMSPRICING POLICIESPRICING POLICYPRICING POLICY REFORMPRICING REFORMPROFIT MARGINSPUBLIC UTILITIESREFINED PRODUCTSREGRESSION ANALYSISREGULAR GASOLINEREMOTE AREASRETAILRETAIL PRICESRETAILINGSAFETY NETSAFETY NETSSALESALESSAVINGSSINGLE MARKETSMART CARDSMART CARDSSOCIAL PROTECTIONSOCIAL SAFETY NETSSPOT PRICESPOT PRICESSTABLE PRICESSUPPLIERSSUPPLY CHAINSUSTAINABLE ENERGYTARIFF STRUCTURETAXTAX EXPENDITURESTAX RATESTAX REVENUETAXATIONTRACK RECORDTRADITIONAL FUELSTRANSACTION COSTTRANSPARENCYUNEMPLOYMENTVEHICLESWAGESWEALTHWHOLESALE GASOLINEWHOLESALE PRICESWORLD MARKETWorld Bank10.1596/1813-9450-6450