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The paper reviews recent developments in the pass-through of international to domestic petroleum product prices, in the different fuel pricing regimes, and in fuel subsidies in a range of emerging market and developing economies. The main finding of the paper is the limited price pass-through in many countries and the consequent increase in fuel subsidies. The paper proposes that key elements of a successful strategy to contain subsidies should comprise: making subsidies explicit; making pricing mechanisms more robust; combining reductions in subsidies with measures to protect the poorest; using the resulting savings well, and transparency and consultation.
Investments: Energy --- Inflation --- Macroeconomics --- Public Finance --- Policy Objectives --- Policy Designs and Consistency --- Policy Coordination --- Fiscal Policy --- Energy: Demand and Supply --- Prices --- Price Level --- Deflation --- Energy: General --- Energy industries & utilities --- Investment & securities --- Fuel prices --- Oil prices --- Energy subsidies --- Oil --- Expenditure --- Commodities --- Expenditures, Public --- Petroleum industry and trade --- Dominican Republic
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