Fuel Pricing Mechanisms

The current phase of sharply declining crude oil and petroleum product prices offers an opportunity for a critical investigation of the absolute level of pump prices for fuel and the nature and manner of adjustment of the price level. This includes the opportunity to move from ad hoc pricing towards formula-based automatic pricing at relatively low political cost. The same applies to the elimination of direct and indirect subsidies which should continue in parallel, and to the imposition of (possibly earmarked) tax on fuel. The discussion paper provides an overview of forms of fuel pricing in the transport sector.

• Exploit Falling Markets
  gtz2008-en-exploit-falling-markets.pdf, 0,11 MB (English)