Energy subsidies versus economic efficiency: practical and theoretical issues in the case of Brunei Darussalam

Article


Lawrey, Roger Neil and Pillarisetti, Janaki Ram. 2011. "Energy subsidies versus economic efficiency: practical and theoretical issues in the case of Brunei Darussalam." Asian Social Science. 7 (3), pp. 108-116. https://doi.org/10.5539/ass.v7n3p108
Article Title

Energy subsidies versus economic efficiency: practical
and theoretical issues in the case of Brunei Darussalam

ERA Journal ID40949
Article CategoryArticle
AuthorsLawrey, Roger Neil (Author) and Pillarisetti, Janaki Ram (Author)
Journal TitleAsian Social Science
Journal Citation7 (3), pp. 108-116
Number of Pages9
Year2011
Place of PublicationToronto, ON. Canada
ISSN1911-2017
1911-2025
Digital Object Identifier (DOI)https://doi.org/10.5539/ass.v7n3p108
Web Address (URL)http://www.ccsenet.org/journal/index.php/ass/article/view/7820
Abstract

Energy prices in Brunei are highly subsidised and have not changed for over twenty years. Electricity is priced at
approximately B$0.06 (US$0.044) per kWh and petrol (gasoline) varies from B$0.36 (US$0.26) per litre for
regular to a maximum of B$0.53 (US$0.38) per litre for premium unleaded. With oil and natural gas prices at
relatively high historical levels and the government attempting to reduce its influence on the economy and
promote privatisation, the increasing size of the subsidies has come to the attention of policy makers. This paper
considers likely market prices for energy in Brunei given current institutions and infrastructure and discusses
issues associated with removal of the subsidies in this unique economy.

Keywordsenergy; subsidies; tariffs; efficiency; conservation; Brunei
ANZSRC Field of Research 2020380119. Welfare economics
440499. Development studies not elsewhere classified
440703. Economic development policy
Byline AffiliationsUniversity of Brunei Darussalam, Brunei
Institution of OriginUniversity of Southern Queensland
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