[PDF.73bl] Automatic Fuel Pricing Mechanisms with Price Smoothing : Design, Implementation, and Fiscal Implications

Automatic Fuel Pricing Mechanisms with Price Smoothing : Design, Implementation, and Fiscal Implications

[PDF.bk77] Automatic Fuel Pricing Mechanisms with Price Smoothing : Design, Implementation, and Fiscal Implications

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 |  2013-01-24 |  2013-01-24 | File type: PDF

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Many developing and emerging countries do not fully pass-through increases in international fuel prices to domestic retail prices, with adverse consequences for fuel tax revenues and tax volatility. The adoption of an automatic fuel pricing mechanism can help to address this problem, and the incorporation of a price smoothing mechanism can ensure pass-through over the medium term but also avoid sharp increases (and decreases) in domestic prices. This technical note addre...

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