01878cas a2200265 a 4500 AALejournalIMF001472 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451849738 1018-5941 BD-DhAAL BD-DhAAL Bingham, Benedict. Domestic Petroleum Price Smoothing in Developing and Transition Countries / Benedict Bingham, James Daniel, Giulio Federico. Washington, D.C. : International Monetary Fund, 2001. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines the case for government-led smoothing of domestic petroleum prices in the face of volatile international prices. Governments in most developing and transition countries engage in petroleum price smoothing, as the survey of country practice carried out for this paper shows. This paper reviews the potential welfare implications of petroleum price volatility, and assesses different price smoothing rules on the basis of historical oil prices. These simulations reveal the presence of a sharp trade-off between price smoothing and fiscal stability, suggesting that developing and transition country governments should engage in limited price smoothing and, if possible, rely on hedging instruments to do so. Mode of access: Internet Daniel, James. Federico, Giulio. IMF Working Papers; Working Paper ; No. 2001/075 Full text available on IMF http://elibrary.imf.org/view/journals/001/2001/075/001.2001.issue-075-en.xml IMF e-Library