1 / 20

Peter Wooders IISD-GSI November 20, 2012

Peter Wooders IISD-GSI November 20, 2012. www.iisd.org/gsi. Introduce a set of common reference points Based on IISD-GSI observations Pathways for fuel price reform 3 Do’s and 2 Don’ts of energy pricing policies Feedback from GIZ-GSI Eschborn workshop

hada
Download Presentation

Peter Wooders IISD-GSI November 20, 2012

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Peter Wooders IISD-GSI November 20, 2012 www.iisd.org/gsi

  2. Introduce a set of common reference points • Based on IISD-GSI observations • Pathways for fuel price reform • 3 Do’s and 2 Don’ts of energy pricing policies • Feedback from GIZ-GSI Eschborn workshop • “Smart Fuel Price Regulation”, Nov. 8-9, 2012 Contents of this presentation

  3. Pathways for fuel price reform: the destination

  4. Budgetary transfers/taxation involved in fuel price formation Pricing: Ad hoc/ automatic/ free market-based Transparency: of policies, price composition Enforcement of pricing policies Do #1: Design energy pricing reform in four dimensions

  5. 1st dimension: Budgetary transfers / taxation involved into fuel price formation Budget transfers Budget transfers

  6. Don’t (#1)look for a “secret formula” of the energy price that would correspond to a certain level of a country’s development In general, P = MC (Price = Marginal Cost of supply) The real question: who pays the P…. …consumers or government? What is the right price level?

  7. 2nd dimension: Pricing mechanisms Formula-based pricing – with or without price stabilization fund Ad hoc pricing – any possible number of ways…. Free market-based pricing – nothing around your neck!

  8. 3rd dimension: Transparency of policies and price composition

  9. 4th dimension: Real-life enforcement of pricing policies

  10. Fuel pricing reform and deregulation of the downstream industry in the Philippines

  11. Budgetary transfers/taxation • Switching between ad hoc/automatic/free market-based pricing Transitions can be fast or gradual in two dimensions: E.g. possible “fast tracks” for a country with ad hoc pricing….

  12. Transitions can only be gradual in the other two dimensions: • Increasing transparency of government regulations and price composition • Improving enforcement of the pricing policies Do #2 :Give preference to gradual approach Don’t (#2)think of energy price reform as a stand-alone issue. It’s always part of a bigger picture • Successful reform = efficient transport sector, economy?

  13. Do#3: Look at options to reduce energy prices beyond subsidies • address the fundamental components of the marginal cost of energy supply such as the costs of energy production, transportation and distribution, as well as taxes

  14. Making the market run properly ongoing challenge • Dieselisation of transport fleet/the economy • Global refining unbalanced, margins increasing • Looking at non-oil transport fuels (NGVs, etc.) • Deregulation of fuel prices is the target. But… • Market prices cannot be passed onto all customers at all times – how to stabilise/smooth prices • Tax: postpone if prices high? But raise more revenue? • How to mitigate impacts? Who is responsible? Regulators’ common issues

  15. Monthly newsletter • Annual meetings (similar number of people) • EnergyWiki - country factsheets, GIZ format • Peer-review of pricing policies in a country • by other countries • Thematic trainings • In-depth research reports on key topics • Topic #1: dieselisation of transport fleet A network of fuel market regulators: possible activities (near-term)

  16. THANK YOU FOR YOUR ATTENTION! www.iisd.org/gsi

More Related