World Bank2012-03-192012-03-192011-01-01https://hdl.handle.net/10986/2743Petroleum products are used across the entire economy in every country. Gasoline and diesel are the primary fuels used in road transport. Oil is used in power generation, accounting for eleven percent of total electricity generated in Africa in 2007. Adequate and reliable supply of transport services and electricity in turn are essential for economic development. Households use a variety of petroleum products: kerosene is used for lighting, cooking, and heating; liquefied petroleum gas for cooking and heating; and gasoline and diesel for private vehicles as well as captive power generation. Prices users pay for these petroleum products have macroeconomic and microeconomic consequences. At the macroeconomic level, oil price levels can affect the balance of payments, gross domestic product (GDP), and, where fuel prices are subsidized, government budgets, contingent liabilities, or both. At the microeconomic level, higher oil prices lower effective household income in three ways. First, households pay more for petroleum products they consume directly. Seventy percent of Sub-Saharan Africans are not yet connected to electricity; most without access rely on kerosene for lighting. Second, higher oil prices increase the prices of all other goods that have oil as an intermediate input. The most significant among them for the poor in low-income countries is food, on which the poor spend a disproportionately high share of total household expenditures. Food prices increase because of higher transport costs and higher prices of such inputs to agriculture as fertilizers and diesel used for operating tractors and irrigation pumps. For the urban poor that use public transport, higher transport costs also decrease their effective income. Third, to the extent that higher oil prices lower GDP growth, household income is reduced.CC BY 3.0 IGOACCESS TO ELECTRICITYACCIDENTSAIRPORTALTERNATIVE TRANSPORTALTERNATIVE TRANSPORT MODESAVAILABILITYAVIATION FUELBALANCEBALANCE OF PAYMENTSBARRIERS TO ENTRYBOILERSBORDER TRADEBUSBUS OPERATORSCAPITAL INVESTMENTSCARRIERSCARSCOALCOASTAL TANKERCONCESSIONCONGESTIONCONSUMPTION OF PETROLEUMCONTINGENT LIABILITIESCOSTS OF FUELCRUDE OILCRUDE OIL PIPELINECRUDE PRICECRUDE PRICESDEMAND FOR AVIATIONDEMAND FOR PETROLEUM PRODUCTSDEPOTDEPOTSDIESELDIESEL FUELDISTRIBUTION INFRASTRUCTUREDOMESTIC CRUDE OILDOMESTIC MARKETDOWNSTREAM OILECONOMIC REGULATIONECONOMIES OF SCALEEFFICIENCY IMPROVEMENTELECTRICITYEXPORT MARKETFAIRFINANCIAL PERFORMANCEFLEET MANAGEMENTFLEET OPERATORSFREE GASOLINEFREIGHTFREIGHT SECTORFREIGHT TRANSPORTFUELFUEL ADULTERATIONFUEL COSTSFUEL OILFUEL PRICESFUEL PROCUREMENTFUEL QUALITYFUEL SHORTAGEFUEL SHORTAGESFUEL SPECIFICATIONSFUEL SUPPLYFUEL TAXESFUELSGAS PROCESSING PLANTGASOLINEGASOLINE COSTGASOLINE PRICESGASOLINE PRODUCTIONGASOLINE PUMP PRICESGRID POWERGROSS DOMESTIC PRODUCTHIGHER OIL PRICESHOUSEHOLD EXPENDITURESHUB AIRPORTSINSPECTIONINTERNATIONAL MARKETSINTERNATIONAL OIL PRICESINVENTORYKEROSENEKEROSENE CONSUMPTIONLAND TRANSPORTLIQUEFIED PETROLEUM GASLIQUID FUELSLONG-DISTANCELUBRICANTSMARKET CONCENTRATIONMARKET INFORMATIONMARKET PRICESMARKET SHAREMARKET STRUCTUREMARKETINGMILLION BARRELSMINERALMONOPOLIESMONOPOLYNATIONAL OILNATURAL GASNATURAL GAS PROCESSINGNATURAL MONOPOLIESNATURAL RESOURCESOIL AND GASOIL COMPANYOIL DEMANDOIL INDUSTRYOIL MARKETINGOIL MARKETING COMPANIESOIL PIPELINEOIL PRICEOIL PRICESOIL PRODUCEROIL PRODUCTSOIL REFINERIESOIL SECTOROIL SUPPLYOIL-IMPORTING COUNTRIESPETROLEUMPETROLEUM GASPETROLEUM INDUSTRYPETROLEUM MARKETPETROLEUM PRODUCT CONSUMPTIONPETROLEUM PRODUCT PRICESPETROLEUM PRODUCT SUPPLYPETROLEUM PRODUCTSPETROLEUM REFINERIESPETROLEUM SECTORPETROLEUM SUPPLYPIPELINEPIPELINE CAPACITYPIPELINE COMPANYPIPELINE TRANSPORTPIPELINESPORT OF ENTRYPOWERPOWER GENERATIONPOWER PLANTPOWER SECTORPOWER SHORTAGESPRICE ADJUSTMENTPRICE CEILINGSPRICE CONTROLPRICE INCREASESPRICE LEVELSPRICE OF OILPRICE REGULATIONPRICE SPIKESPRICE STABILIZATIONPRICE STRUCTUREPRICE TRENDSPRICE VOLATILITYPRICING POLICIESPRICING POLICYPRIMARY SOURCESPRIVATE INVESTMENTPRIVATE SECTORPRIVATE VEHICLESPRODUCT MARKETSPRODUCTS PIPELINEPROFIT MARGINSPUBLIC TRANSPORTPURCHASINGRAILRAIL FREIGHTRAIL INFRASTRUCTURERAIL LINERAIL TRANSPORTRAIL USERAILWAYRAILWAYSREFINED PRODUCTSREFINERYREFINERY CAPACITYREFININGRESIDUAL FUELRESIDUAL FUEL OILRETAILRETAIL MARKETINGRETAIL PRICERETAIL PRICESRETAILINGROADROAD CONDITIONSROAD DAMAGEROAD IMPROVEMENTROAD TRANSPORTROADSROUTEROUTESSALESALESSALES ARRANGEMENTSSPOT PRICESTOCK LEVELSSTOCK MANAGEMENTSTOCKSSTORAGE CAPACITYSTORAGE FACILITIESSULFURSUPPLIERSUPPLIERSSUPPLY CHAINSUPPLY CONTRACTSUPPLY EFFICIENCYSURPLUSTAXTAX REVENUESTRAFFICTRAFFIC SAFETYTRAINSTRANSITTRANSPARENCYTRANSPORTTRANSPORT ACTIVITIESTRANSPORT CAPACITYTRANSPORT COSTSTRANSPORT INFRASTRUCTURETRANSPORT MODETRANSPORT MODESTRANSPORT SECTORTRANSPORT SERVICESTRUCKSTRUEUNDERGROUNDUTILITIESVEHICLEWHOLESALE DISTRIBUTORSWHOLESALE MARKETINGWHOLESALERSWORLD MARKETWORLD OIL PRICESWorld Bank10.1596/2743