[sustran] International Fuel Prices 2005

[Wagner Armin GTZ 4413]

NEW: International Fuel Prices 2005

Due to the increasing oil prices several developing countries had to reduce their subsidies on fuel in the recent weeks which lead to serious public unrest. In Yemen, 22 people died and hundreds of people were injured during clashes between the Yemeni military and protesters forcing the government to revise its decision. In Indonesia, large protests and strikes by public transportation employees were triggered and in numerous other countries such as Nigeria, Malaysia, and Bangladesh disapproval by the population provides dangerous potential for further agitation.

However, most of the affected countries do not have a choice but to reduce subsidies if they do not want to be overwhelmed with its financial burden. For example, according to recent projections for Indonesia oil subsidisation will require up to 13.5 bn. US-$ in FY2005 leading to a budget deficit three times as large as initially planned and amounts to more than 25% of Indonesia's public expenditures. As a consequence, there will be significantly less money available for social infrastructure which will particularly harm the poor.

The only possible conclusion from these events for the countries concerned is that they must change their oil price policy. Subsidisation must be removed gradually ideally leading to a system of fuel taxation in the medium term. During this process it is crucial to communicate especially to the weak groups in society that in the long run fuel subsidies hurt poor households economically rather than assisting them.

Due to the tremendous relevance of this topic, the German Technical Cooperation (GTZ) on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) publishes the comprehensive study "International Fuel Prices 2005" in order to provide data which facilitate well-informed decision making. 

The most recent publication "International Fuel Prices 2005" (Author Dr Gerhard P Metschies) contains the following information: 

- Diesel Prices of 172 countries
- Gasoline Prices of 172 countries
- Time Series of Price Trends
- Fuel Taxation for State Financing
- Fuel Subsidies
- Fuel Prices and Purchasing Power
- Contraband of Fuel Worldwide
- Government Tax Calculation

The publication is available on: <http://www.gtz.de/en/themen/umwelt-infrastruktur/transport/10285.htm> 

The reader may note that this survey is based on a crude oil price of 43 $ per barrel - far lower than today's prices. However, all conclusions remain valid.  

In addition, a monthly newsletter will be released by the mid-September. The newsletter aims at supporting government officials as well as decision makers from NGO's and the private sector in developing and implementing sustainable oil price policies. 

If you are interested in receiving the newsletter please send an email to Majordomo at mailserv.gtz.de  <mailto:Majordomo at mailserv.gtz.de> that contains the line "subscribe fuelprices <your email address>". Please make sure to delete all other contents from the mail body, so that your request can be processed. For further information feel free to contact us ( armin.wagner at gtz.de  <mailto:armin.wagner at gtz.de>) or visit our web page <http://www.gtz.de/en/themen/umwelt-infrastruktur/transport/10285.htm>. 

Sorry for cross-posting. 

Best regards,

Armin Wagner

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Transport Policy Advisor
Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH
(German Technical Cooperation)
Division 44 - Environment and Infrastructure
Transport and Mobility
P.O. Box 5180
65726 Eschborn, Germany
Tel. + 49 6196 79- 6467
Fax. +49 6196 79-80 6467
E-Mail:Armin.Wagner at gtz.de
http://www.gtz.de/transport



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30 Years GTZ. Partner for the Future. Worldwide.
GTZ Spotlight 2005: Focus - Fascination - Future: Designing tomorrow's cities. http://www.gtz.de/spotlight

________________________________________________________

30 Years GTZ. Partner for the Future. Worldwide.
GTZ Spotlight 2005: Focus - Fascination - Future: Designing tomorrow's cities. http://www.gtz.de/spotlight