01928cas a2200253 a 4500 AALejournalIMF006706 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455205325 1018-5941 BD-DhAAL BD-DhAAL Coady, David. The Unequal Benefits of Fuel Subsidies : A Review of Evidence for Developing Countries / David Coady, Javier Arze del Granado. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (23 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 reviews evidence on the impact of fuel subsidy reform on household welfare in developing countries. On average, the burden of subsidy reform is neutrally distributed across income groups; a USD 0.25 decrease in the per liter subsidy results in a 6 percent decrease in income for all groups. More than half of this impact arises from the indirect impact on prices of other goods and services consumed by households. Fuel subsidies are a costly approach to protecting the poor due to substantial benefit leakage to higher income groups. In absolute terms, the top income quintile captures six times more in subsidies than the bottom. Issues that need to be addressed when undertaking subsidy reform are also discussed, including the need for a new approach to fuel pricing in many countries. Mode of access: Internet Arze del Granado, Javier. IMF Working Papers; Working Paper ; No. 2010/202 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/202/001.2010.issue-202-en.xml IMF e-Library