If global oil prices fall, developing countries shouldn’t pass lower prices on to consumers.
Benedict Clements and Sanjeev Gupta argue this is a opportunity to raise energy taxes, strengthen public finances, and create fiscal space for development priorities and climate goals.
go.cgdev.org/4eIl8r0
How should developing countries respond if international oil prices fall? Should they immediately pass on lower prices to consumers? We argue that they should resist doing so, at least in part, and instead use the opportunity to increase energy taxation.
