Commercial energy subsidies in developing countries Opportunity for reform

Abstract

Energy subsidies are still pervasive in many developing countries. Oil exporters heavily subsidize all domestic oil consumption while several importers subsidize particular petroleum products. Estimates of foregone revenues in the oil-exporting countries approximate one-third of all oil export revenues. Finally, subsidies for electricity, natural gas and coal are even more pervasive. In virtually all of the countries studies, the prices of these fuels do not reflect marginal costs.