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World Bank warns Asian governments are exhausting room to fund energy subsidies
- Mountain Time
- Local time
- 7:00 AM UTC
- Where
- Asia
A World Bank report cited by OilPrice.com says the Iran-war energy shock is draining dollar reserves in import-dependent Asian economies including Indonesia, Thailand and Vietnam. It says fuel subsidies have limited retail-price increases but have become less effective at containing headline inflation.
Why it matters
Governments facing depleted fiscal and foreign-exchange capacity may have to reduce fuel subsidies or find new financing, creating a near-term decision point for domestic fuel pricing.
Source
- OilPrice.comoilprice.comPublished
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