The Distributional Implications of the Impact of Fuel Price Increases on Inflation
The Distributional Implications of the Impact of Fuel Price Increases on Inflation

Author: Mr. Kangni R Kpodar

Publisher: International Monetary Fund

Published: 2021-11-12

Total Pages: 34

ISBN-13: 1616356154

DOWNLOAD EBOOK

This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries.

Motor Fuels
Motor Fuels

Author:

Publisher: DIANE Publishing

Published: 2005-09

Total Pages: 62

ISBN-13: 9781422300527

DOWNLOAD EBOOK

This primer will help improve public understanding of the major factors that influence the U.S. price of gasoline & the challenges facing the U.S. on issues related to gasoline supply, demand, & prices. This primer presents information on the factors that influence the price of gasoline &, to the extent possible, why those factors have developed. Specifically, it explains how gasoline is made & distributed, what consumers pay for in a gallon of gasoline, why gasoline prices change over time, & why gasoline prices vary from place to place. The information is presented in a question-&-answer format & is written for a nontechnical audience. Charts, tables & graphs.

Understanding Gasoline Prices
Understanding Gasoline Prices

Author:

Publisher:

Published: 2005

Total Pages:

ISBN-13:

DOWNLOAD EBOOK

The Canadian oil industry often faces criticism from consumers and the media with respect to gasoline prices. Consumer frustration over frequent changes in pump prices is exacerbated by the fact that gasoline is the only commodity in our society where consumers can do their comparison shopping from the comfort of their automobile. This paper will examine the factors that influence gasoline prices in Canada. It will begin with an in depth look at each of the pump price components and discuss the factors that influence them. The paper will conclude with an examination of how some of the key factors, such as crude oil prices and exchange rates, have shaped gasoline prices over the past few years.

Foundations of Natural Gas Price Formation
Foundations of Natural Gas Price Formation

Author: Sergei Komlev

Publisher: Anthem Press

Published: 2020-09-25

Total Pages: 167

ISBN-13: 178527340X

DOWNLOAD EBOOK

‘Foundations of Natural Gas Price Formation’ examines the fundamentals of natural gas price formation and the five principal features that make it unique in the world of commodities. It presents a model of hybrid gas pricing developed by Sergei Komlev from his detailed analysis of the interlinked impact of these features that is presented as a corrective to potential market failure. Using mainstream economic theory, the book presents hybrid-pricing mechanisms not previously analyzed. Through a failure to understand the role of hybrid-pricing, boosters of spot pricing mechanisms through gas hubs are promoting an incorrect understanding of gas markets that will lead to market failure and to potential critical supply shortages in the near-term future. ‘Foundations of Natural Gas Price Formation’ defends the system of oil-indexed pricing as an accurate, market-based mechanism that has stood the test of time.

Dynamic Fuel Price Pass-Through
Dynamic Fuel Price Pass-Through

Author: Mr.Kangni R Kpodar

Publisher: International Monetary Fund

Published: 2017-01-18

Total Pages: 32

ISBN-13: 1475567774

DOWNLOAD EBOOK

This paper assesses the dynamic pass-through of crude oil price shocks to retail fuel prices using a novel database on monthly retail fuel prices for 162 countries. The impulse response functions suggest that on average, a one cent increase in crude oil prices per liter translates into a 1.2 cent increase in the retail gasoline price at peak level six months after the shock. However, the estimates vary significantly across country groups, ranging from about 0.5 cent in MENA countries to two cents in advanced economies. The results also show that positive oil price shocks have a larger impact than negative price shocks on the retail gasoline price. Finally, the paper underscores the importance of the new dataset in refining estimates of the fiscal cost of incomplete pass-through.