Kojima, Masami2014-01-072014-01-072013-01https://hdl.handle.net/10986/16524Increases in world oil prices since 2004 have challenged consumers and oil-importing countries across the world. Oil prices temporarily fell sharply in 2009, only to triple three years later. The oil import share of gross domestic product rose by nearly half among net oil importers in just two years between 2009 and 2011. Governments that control oil product prices have come under pressure to intervene by keeping domestic prices low and effectively subsidizing consumers. This study focuses on the evolving role of oil in national economies, particularly those of developing countries, and proposes a menu of options for drawing a roadmap for pricing policy reform for oil products. In light of events since 2009, it examines how recent price movements have affected countries' vulnerability to world oil price increases, how governments have adjusted domestic fuel prices in response, the consequences of the policy responses, other coping mechanisms to deal with high oil prices and price volatility, the roadblocks to reforming pricing policy, and how to deal with them. This report suggests a menu of options for moving away from sectoral subsidies to market-based pricing, accompanied by an integrated social protection program and complementary policies to reduce consumption through efficiency improvement and fuel diversification. Sending the right price signals and reducing consumption can bring many benefits, ranging from greater supply security to less congestion and pollution from road transport. This report can help policy makers conduct more informed national dialogues on managing fuel pricing and the political economy around it.en-USCC BY 3.0 IGOADVERSE EFFECTSAGRICULTUREAIR POLLUTIONAPPROACHATMOSPHERIC PRESSUREAVAILABILITYAVERAGE PRICEAVERAGE PRICESBALANCEBARRELS PER DAYBASE YEARBENCHMARKBLACK MARKETBLACK MARKETSCASH FLOWCOLLUSIONCOMMERCIALIZATIONCOMMODITIESCOMMODITYCOMMODITY PRICECOMPETITIVE MARKETCOMPETITIVE MARKETSCONFIDENTIALITYCONSUMER PRICECONSUMER PRICE INDEXCONSUMERSCONTROLLED PRICESCORPORATE TAXCRUDE OILCURRENCY APPRECIATIONCURRENT ACCOUNT BALANCEDECISION MAKINGDELIVERY MECHANISMDEREGULATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT AGENCYDIESELDIESEL FUELDIVIDENDSDOMESTIC INFLATIONDOMESTIC MARKETDOMESTIC MARKETSDOMESTIC OILDOMESTIC PRICEDOMESTIC PRICESECONOMIC DEVELOPMENTECONOMIES OF SCALEEFFICIENCY IMPROVEMENTELECTRICITYENERGY CONSERVATIONENERGY CONSUMPTIONENERGY USEETHANOLEXCHANGE RATEEXPENDITUREEXPENDITURESFAIRFAIR TRADINGFEDERAL RESERVEFEDERAL RESERVE BANKFINANCIAL CONTRACTFINANCIAL CRISISFOOD PRICESFOSSILFOSSIL FUELFUELFUEL OILFUEL PRICESFUEL SUPPLYFUEL SWITCHINGFUEL TYPEFUTURE PRICESFUTURESGASGASOLINEGASOLINE PRICEGASOLINE PRICESGDPGDP PER CAPITAGLOBAL MARKETGLOBALIZATIONGOOD GOVERNANCEGOVERNMENT INTERVENTIONGOVERNMENT INTERVENTIONSGOVERNMENT INVOLVEMENTGROSS DOMESTIC PRODUCTHYDROPOWERHYDROPOWER GENERATIONINCOMEINCOME GROUPINCOME GROUPSINCOME TAXINEFFICIENCYINFLATIONINFRASTRUCTURE INVESTMENTSINSTITUTIONAL CAPACITYINSURANCEINTERNATIONAL COOPERATIONINTERNATIONAL MARKETINTERNATIONAL TRADEKEROSENELIQUID FUELSLOCAL CURRENCYLOW-INCOME COUNTRIESMACROECONOMIC PERFORMANCEMARKET CONCENTRATIONMARKET CONDITIONSMARKET DISTORTIONSMARKET INCENTIVESMARKET PRICESMARKET STRUCTUREMERIT GOODMIDDLE-INCOME COUNTRIESMONOPOLIESMONOPOLYNATIONAL ECONOMIESNATURAL DISASTERSNATURAL GASNATURAL GAS CONSUMPTIONNATURAL GAS PRICESNATURAL GAS PRODUCTIONNATURAL MONOPOLIESNET OILOILOIL COMPANIESOIL COMPANYOIL CONSUMPTIONOIL DEMANDOIL EXPORTERSOIL EXPORTSOIL FUELSOIL IMPORTSOIL INDUSTRYOIL INFRASTRUCTUREOIL MARKETSOIL PRICEOIL PRICESOIL PRODUCINGOIL PRODUCING COUNTRIESOIL PRODUCTIONOIL PRODUCTSOIL REFININGOIL SUPPLYOPPORTUNITY COSTOPPORTUNITY COSTSOUTPUTPETROLEUMPETROLEUM GASPETROLEUM INDUSTRYPETROLEUM PRODUCTSPOLITICAL ECONOMYPOLITICAL SYSTEMPOLLUTIONPOVERTY ALLEVIATIONPOWERPOWER GENERATIONPOWER PARITYPOWER SECTORPOWER SHORTAGESPRICE ADJUSTMENTPRICE ADJUSTMENTSPRICE BANDPRICE BANDSPRICE CEILINGSPRICE CHANGEPRICE CHANGESPRICE COMPETITIONPRICE CONTROLPRICE CONTROLSPRICE DECREASESPRICE EFFECTPRICE INCREASEPRICE INCREASESPRICE LEVELPRICE LEVELSPRICE MOVEMENTSPRICE OF OILPRICE REGULATIONPRICE RISKSPRICE SPIKESPRICE STABILITYPRICE STABILIZATIONPRICE SUBSIDIESPRICE SUBSIDYPRICE VARIATIONPRICE VOLATILITYPRICING MECHANISMSPRICING POLICIESPRICING POLICYPRICING POLICY REFORMPRICING REFORMPROFIT MARGINSPUBLIC UTILITIESPURCHASINGPURCHASING POWERREGRESSION ANALYSISREGULAR GASOLINEREMOTE AREASRETAILRETAIL PRICESSALESALESSAVINGSSINGLE MARKETSOCIAL PROTECTIONSOCIAL SAFETY NETSSPOT PRICESPOT PRICESSTABLE PRICESSUBSTITUTESSUPPLIERSSUPPLY CHAINSUSTAINABLE ENERGYTARIFF STRUCTURETAXTAX EXPENDITURESTAX RATESTAX REVENUETAXATIONTRACK RECORDTRANSPARENCYTRANSPARENCY INITIATIVEVEHICLESWHOLESALE GASOLINEWHOLESALE PRICESWORLD MARKETWorld Bank10.1596/16524