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Trinidad and Tobago: Selected Issues

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  • International Monetary Fund

Abstract

This paper reviews the historical background of fuel subsidies in Trinidad and Tobago, discusses their fiscal impact and the inflationary impact of subsidy reform, summarizes the regressive distribution of subsidy benefits, focuses on the negative externalities caused by fuel subsidies and the environmental and traffic benefits of phasing them out, and discusses key factors contributing to successful reforms. Fuel subsidies in Trinidad and Tobago, established in 1974, increased dramatically owing to rising global crude oil price in the past few years and led to a growing debate on the costs and benefits of subsidy reform. Fuel subsidies have significantly contributed to the country’s procyclical fiscal stance.

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  • International Monetary Fund, 2016. "Trinidad and Tobago: Selected Issues," IMF Staff Country Reports 2016/205, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2016/205
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    References listed on IDEAS

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    3. Gabriel Di Bella & Mr. Lawrence Norton & Mr. Joseph Ntamatungiro & Ms. Sumiko Ogawa & Issouf Samaké & Marika Santoro, 2015. "Energy Subsidies in Latin America and the Caribbean: Stocktaking and Policy Challenges," IMF Working Papers 2015/030, International Monetary Fund.
    4. Olivier J. Blanchard & Jordi Galí, 2007. "The Macroeconomic Effects of Oil Price Shocks: Why Are the 2000s so Different from the 1970s?," NBER Chapters, in: International Dimensions of Monetary Policy, pages 373-421, National Bureau of Economic Research, Inc.
    5. Chen, Shiu-Sheng, 2009. "Oil price pass-through into inflation," Energy Economics, Elsevier, vol. 31(1), pages 126-133, January.
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