28 consideration are plans in Malawi, Mongolia, Rwanda, and Zambia to increase storage capacity (MERA 2010; Dow Jones 2012a; All Africa 2012b; All Africa 2011a).

Minimum stockholding requirements are often not enforced for cost reasons. In theory, a small fee can be levied on each fuel to finance construction of additional storage capacity and its management, but governments are reluctant to increase costs of supply and add to world oil price increases. The government of Togo acknowledges that the country has little storage capacity but does not have the financial means to expand it (Togosite 2011). Uganda’s only reserve storage facilities for gasoline and diesel in Jinja, in need of rehabilitation, have been empty since 2006 (Dow Jones 2011c).

At the opposite end of the spectrum are policies outside the petroleum sector that can amplify price increases. For example, in late 2010 in China, severe diesel shortages forced thousands of filling stations to shut down and others to ration, as firms turned to diesel power generation when power was rationed to meet the energy intensity target in the 11th Five-Year Plan (2006–10). Power tariff subsidies, which lead to financial difficulties for utilities resulting in insufficient operating capacity for generation, transmission, and distribution, have led to similar scenarios.

# **_Promoting price competition_**

Where prices are not controlled or only price ceilings are set, the government can promote price competition by making information available. The price information needs to be broken down by company, and preferably by filling station. In addition, it is important to promulgate and enforce a rule that requires prices to be posted on display boards at readable heights that are clearly visible to drivers.

Some governments post detailed information about fuel prices to help consumers. Some list current prices only, others post recent but not current prices, and a handful lists both current and historical prices. Among the most detailed and timely is the online price database in Chile— mandated by a resolution issued in January 2012—which is also available on iPhone, BlackBerry, and Android. The database gives viewers the choice of displaying data in order of increasing or decreasing price and the address of each filling station, prices, and the date and time of the last price change. The government of Guatemala highlights on its Web site the filling stations with the lowest prices in the Guatemala City Metropolitan Area with their addresses and street maps every week. Instituto Nicaragüense de Energía (Nicaraguan Institute of Energy) surveys about 75 filling stations in Managua every week and provides details on the three highest-priced and three lowest-priced filling stations. The Authority for Consumer Protection and Competition in Panama, proclaiming “an informed consumer has power,” collects and posts gasoline and diesel prices at filling stations every four weeks, highlighting those with low prices. The Ministry of Economy in El Salvador until 2012 was posting lowest prices in three parts of the country as saving tips. Argentina, Pakistan, Peru, and the Philippines also post detailed price information by company.

For price competition to benefit consumers, however, it is important that there be effective monitoring and enforcement of technical standards, or else a competitive fuel market can lead to partial or total product degradation, with a low-quality product (adulterated, mislabeled, or short-weighted) driving out a high-quality product.