Dynamic Fuel Price Pass-Through : Evidence from a New Global Retail Fuel Price Database /

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 in...

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Detalhes bibliográficos
Autor principal: Kpodar, Kangni
Outros Autores: Abdallah, Chadi
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2016.
Colecção:IMF Working Papers; Working Paper ; No. 2016/254
Acesso em linha:Full text available on IMF
Descrição
Resumo: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.
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Descrição Física:1 online resource (32 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students