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|**Country E R**|**Pricing policy and strategy**|**Fuel supply conditions**|
|---|---|---|
||hedging gains in the first half of 2011 allowed fuel subsidies to be<br>covered through July. In Jan 2012, government announced that it wa<br>hedging crude on a quarterly basis.<br>**Information**: NPA posts detailed information on current and<br>historical prices and price structures on its Web site, although<br>subsidies at the refinery gate are not made explicit. Negative taxes<br>are shown for kerosene, premix, and LPG, but their sizes are much<br>smaller than the actual subsidies, hidden in the ex-refinery prices.|s|
|Guatemala|**Pricing policy**: Fuel prices are deregulated.<br>**Information**: Government posts on its Web site weekly surveys of<br>gasoline and diesel prices in different parts of the country, average<br>weekly prices of LPG by cylinder size and company, and daily<br>international prices and retail prices in the capital. Filling stations<br>with lowest prices in the Guatemala City Metropolitan Area are<br>highlighted with addresses and street maps every week.|**Supply**: There has been some confusion<br>about whether Guatemala is a member of<br>PetroCaribe. After the Guatemalan<br>president’s statement in early 2012 that his<br>administration was considering joining the<br>accord, Venezuela replied that Guatemala<br>was alreadya member.|
|Guinea-<br>Bissau|<br>**Pricing policy**: The pass through of world price increases was full<br>in 2011 but only half in 2008–10. Government has since been<br>adjusting fuel prices monthly, aiming at full pass through. Raising<br>the import reference price for diesel further is part of the 2012<br>budget. There is a duty-free category for diesel, the volume of which<br>government is trying to reduce.|<br>**Supply**: PetroGuin, the national oil<br>company, is responsible for importing and<br>distributing all petroleum products.|
|Honduras|<br>**Pricing policy**: By a 2007 executive decree, government sets<br>maximum retail fuel prices every week. LPG for household use is<br>subsidized.<br>**Information**: Fuel prices used to be posted on the Web site of the<br>Petroleum Administrative Commission, but the site is no longer<br>functioning.|**Supply**: Honduras severed its membership<br>in PetroCaribe in Jan 2010, although<br>Venezuela stopped supplying fuel in Jun<br>2009. The halting of fuel purchase under<br>Petrocaribe had little or no impact on local<br>fuel prices because the amount of imports<br>under the accord was a fraction of the total<br>imports|
|India<br>√|<sup>**Pricing policy**: Subsidized fuels are provided only through state-</sup><br>owned oil companies. The administered pricing mechanism was<br>dismantled in Apr 2002 except for kerosene and LPG for household<br>use. The price of household kerosene has been set at about Rs 15<br>(US$0.28)/liter since October 2012, against the average FOB<br>benchmark price in the Arab Gulf of US$0.78/liter. Industrial users<br>of kerosene pay more than triple those paid by households. Although<br>gasoline and diesel prices are meant to be market-based, their prices<br>since fiscal 2004/2005 have been kept lower than what would have<br>prevailed under market conditions. In 2003, government introduced<br>a scheme for allocating price under-recoveries to upstream oil and<br>gas companies, oil marketing companies, and cross-subsidization<br>from gasoline and diesel, but low gasoline and diesel prices have<br>ruled out cross-subsidization since fiscal 2004/2005. Government<br>introduced a price band mechanism with price adjustments every<br>two weeks in 2004, but abandoned it following steady increases in<br>world oil prices. Government in Sep 2012 increased the price of<br>diesel by Rs. 5 (US$0.09)/liter, steepest-ever once-time increase.<br>Retail prices of diesel as charged by India Oil Corporation in New<br>Delhi and benchmark FOB prices relevant to India are shown below.<br>At times retail prices have fallen below the FOB price, signaling a<br>large subsidy. In 2008 and for half of 2012, retail prices were lower<br>than FOB benchmark prices.|.<br> <br> <br>**Supply**: India has 22 refineries with a<br>combined capacity of 4.3 million bpd.<br>Some are among the largest and most<br>sophisticated in the world. Unable to<br>compete with state-owned oil companies<br>that are the only entities authorized to sell<br>subsidized fuels, India’s largest private oil<br>company, Reliance Petroleum, closed down<br>all of its 1,432 filling stations in 2008, and<br>earlier in 2005 Essar Oil closed its 1,250<br>filling stations. Essar has since re-opened<br>its stations.<br>**Strategic reserves**: In Dec 2011, the<br>government reported a plan to build<br>strategic petroleum reserves of nearly 18<br>million tonnes, or 132 million bbl, by 2020,<br>expanding on a 5.3 million-tonne stockpile,<br>the storage tanks for which are under<br>construction, to be used in case of supply<br>disruptions or large price increases.<br>**LPG supply to households**: As of 2010,<br>there were 120 million LPG customers and<br>850 million cylinders in circulation.<br>Government’s vision of covering 100% of<br>population with gas has led to a target of<br>adding another 50 million customers to<br>increase coverage from 50% to 75%.<br>**Shortages**: Regional fuel shortages occur,|