Keep fuel, gasoline prices high, IMF chief urges governments
Time is GMT + 8 hours
Posted: 12-Sep-2006 22:37 hrs
International Monetary Fund (IMF) chief Rodrigo Rato (L) attends an OPEC seminar in Vienna. Rato has criticised attempts to depress fuel prices in the United States, China and some other countries, and advocated raising prices instead of offering tax breaks or subsidies.
IMF chief Rodrigo Rato has criticised attempts to depress fuel prices in the United States, China and some other countries, and advocated raising prices instead of offering tax breaks or subsidies.
.
Rato told a seminar organised by the Organisation of Petroleum Exporting Countries (OPEC) that domestic pricing policies for refined fuels should "truly reflect the scarcity of the resource", high world crude prices, and collateral costs such a pollution.
.
"Domestic fuel prices in all countries should be set to reflect economic and social costs, and to promote an appropriate demand response," he explained.
.
"Relatively low gasoline taxes in the US and low prices in China -- the largest consumers of oil -- as well as highly-subsidised fuel prices in oil-exporting countries and other developing countries relative to international prices discourage conservation with potentially adverse environmental implications."
.
IMF and World Bank analysis consistently showed that "keeping fuel prices below market prices disproportionately benefit wealthier people", he added.
.
"Instead, prices need to be raised, and the impact on poor households should be mitigated through well-designed and targeted safety nets," the IMF's managing director said Tuesday.
.
The suggestion comes at a time when world oil prices are still at high levels despite a recent decline from July's peak of over 78 dollars a barrel.
.
In many industralised nations, including the United States, high crude oil prices have brought about sharp increases in prices of petrol for drivers, and for domestic heating fuel.
.
In the US, pump prices including taxes are traditionally at much lower levels than in Europe.
.
Rato acknowledged that there would be some political resistance to the idea of raising prices. However, he pointed to succesful experiences in Indonesia, Jordan and the United Arab Emirates.
.
He also called for adequate investment in the oil industry to help ease concerns about future supply, and appealed to oil producing nations to strike a better balance between spending and savings for future generations. — AFP
IMF chief Rodrigo Rato has criticised attempts to depress fuel prices in the United States, China and some other countries, and advocated raising prices instead of offering tax breaks or subsidies.
.
Rato told a seminar organised by the Organisation of Petroleum Exporting Countries (OPEC) that domestic pricing policies for refined fuels should "truly reflect the scarcity of the resource", high world crude prices, and collateral costs such a pollution.
.
"Domestic fuel prices in all countries should be set to reflect economic and social costs, and to promote an appropriate demand response," he explained.
.
"Relatively low gasoline taxes in the US and low prices in China -- the largest consumers of oil -- as well as highly-subsidised fuel prices in oil-exporting countries and other developing countries relative to international prices discourage conservation with potentially adverse environmental implications."
.
IMF and World Bank analysis consistently showed that "keeping fuel prices below market prices disproportionately benefit wealthier people", he added.
.
"Instead, prices need to be raised, and the impact on poor households should be mitigated through well-designed and targeted safety nets," the IMF's managing director said Tuesday.
.
The suggestion comes at a time when world oil prices are still at high levels despite a recent decline from July's peak of over 78 dollars a barrel.
.
In many industralised nations, including the United States, high crude oil prices have brought about sharp increases in prices of petrol for drivers, and for domestic heating fuel.
.
In the US, pump prices including taxes are traditionally at much lower levels than in Europe.
.
Rato acknowledged that there would be some political resistance to the idea of raising prices. However, he pointed to succesful experiences in Indonesia, Jordan and the United Arab Emirates.
.
He also called for adequate investment in the oil industry to help ease concerns about future supply, and appealed to oil producing nations to strike a better balance between spending and savings for future generations. — AFP
IMF chief Rodrigo Rato has criticised attempts to depress fuel prices in the United States, China and some other countries, and advocated raising prices instead of offering tax breaks or subsidies.
.
Rato told a seminar organised by the Organisation of Petroleum Exporting Countries (OPEC) that domestic pricing policies for refined fuels should "truly reflect the scarcity of the resource", high world crude prices, and collateral costs such a pollution.
.
"Domestic fuel prices in all countries should be set to reflect economic and social costs, and to promote an appropriate demand response," he explained.
.
"Relatively low gasoline taxes in the US and low prices in China -- the largest consumers of oil -- as well as highly-subsidised fuel prices in oil-exporting countries and other developing countries relative to international prices discourage conservation with potentially adverse environmental implications."
.
IMF and World Bank analysis consistently showed that "keeping fuel prices below market prices disproportionately benefit wealthier people", he added.
.
"Instead, prices need to be raised, and the impact on poor households should be mitigated through well-designed and targeted safety nets," the IMF's managing director said Tuesday.
.
The suggestion comes at a time when world oil prices are still at high levels despite a recent decline from July's peak of over 78 dollars a barrel.
.
In many industralised nations, including the United States, high crude oil prices have brought about sharp increases in prices of petrol for drivers, and for domestic heating fuel.
.
In the US, pump prices including taxes are traditionally at much lower levels than in Europe.
.
Rato acknowledged that there would be some political resistance to the idea of raising prices. However, he pointed to succesful experiences in Indonesia, Jordan and the United Arab Emirates.
.
He also called for adequate investment in the oil industry to help ease concerns about future supply, and appealed to oil producing nations to strike a better balance between spending and savings for future generations. — AFP
IMF chief Rodrigo Rato has criticised attempts to depress fuel prices in the United States, China and some other countries, and advocated raising prices instead of offering tax breaks or subsidies.
.
Rato told a seminar organised by the Organisation of Petroleum Exporting Countries (OPEC) that domestic pricing policies for refined fuels should "truly reflect the scarcity of the resource", high world crude prices, and collateral costs such a pollution.
.
"Domestic fuel prices in all countries should be set to reflect economic and social costs, and to promote an appropriate demand response," he explained.
.
"Relatively low gasoline taxes in the US and low prices in China -- the largest consumers of oil -- as well as highly-subsidised fuel prices in oil-exporting countries and other developing countries relative to international prices discourage conservation with potentially adverse environmental implications."
.
IMF and World Bank analysis consistently showed that "keeping fuel prices below market prices disproportionately benefit wealthier people", he added.
.
"Instead, prices need to be raised, and the impact on poor households should be mitigated through well-designed and targeted safety nets," the IMF's managing director said Tuesday.
.
The suggestion comes at a time when world oil prices are still at high levels despite a recent decline from July's peak of over 78 dollars a barrel.
.
In many industralised nations, including the United States, high crude oil prices have brought about sharp increases in prices of petrol for drivers, and for domestic heating fuel.
.
In the US, pump prices including taxes are traditionally at much lower levels than in Europe.
.
Rato acknowledged that there would be some political resistance to the idea of raising prices. However, he pointed to succesful experiences in Indonesia, Jordan and the United Arab Emirates.
.
He also called for adequate investment in the oil industry to help ease concerns about future supply, and appealed to oil producing nations to strike a better balance between spending and savings for future generations. — AFP
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