The oil price decline creates an opportunity to dismantle energy subsidies, which escalated with high oil prices. This paper assesses energy subsidies in Latin America and the Caribbean — about 1.8 percent of GDP in 2011-13 (approximately evenly split between fuel and electricity), and about...

Government strategies for setting energy prices are not uniform across the Latin America and the Caribbean (LAC) region or even across fuels. Instead, they cover a full spectrum, ranging from discretionary price-fixing at one end to pure market-based approaches at the other. In between is a wide...