[en] Crude oil prices fell dramatically during the fourth quarter of 1992. Refiners are reevaluating their positions to adjust to low demand growth worldwide. The only bright spot appears to be the United States' emergence from its economic recession. However, Japan and Germany are experiencing their own economic recessions, and crude oil supplies show no sign of tightening. Crude oil futures prices have fallen by more than 15% as of January 8, 1993 compared to October 1, 1992. Although the American Petroleum Institute (API) found increases in oil demand during October and November 1992, the increases are attributed to colder weather and the weak 1991 demand that was used for comparison. This issue identifies current factors at work affecting U.S. refining margins and product values, and offers a first quarter 1993 outlook. All data featured in graphs and text come from the Energy detente Refinery Netback Data Series published in each issue, in which gasoline and diesel No. 2 are Lundberg Survey unbranded racks instead of spot quotations. Margins are apparent deltas only and do not reflect actual profits for any individual operation

[en] There is little consensus on whether higher retail gasoline prices in Canada are the result of international crude oil price fluctuations or local market power exercised by large vertically-integrated firms. I find that although both increasing local market concentration and higher average monthly wholesale prices are positively and significantly associated with higher retail prices, wholesale prices are more important than local market concentration. Similarly, crude oil prices are more important than the number of local wholesalers in determining wholesale prices. These results suggest that movements in gasoline prices are largely the result of input price fluctuations rather than local market structure

[en] The House of Commons Standing Committee on Industry, Science and Technology has reviewed the data on retail, rack and crude gasoline prices in Canada in response to soaring prices. Prices were compared to those in the United States and elsewhere. The Committee looked at all possible explanations for the most recent increase in gasoline prices and has concluded that the recent increase in the price of gasoline was the result of industry's competitive reactions to a series of international crises and abnormally cold weather in North America. No evidence indicated anticompetitive conduct on the part of the industry, nor was there evidence of abusive behaviour on the part of vertically integrated suppliers in the form of squeezing retail margins to eliminate or discipline independent retailers. The Committee relied on data collected and published by the industry. It would have preferred an independent source, but none was available. The Committee recommended that the Government of Canada create and fund a Petroleum Monitoring Agency to collect and disseminate price data on crude oil, refined petroleum products, and retail gasoline for all relevant North American markets. The agency will report to Parliament on an annual basis for 3 years. The report will include information on the competitive aspects of the petroleum sector in Canada. refs., tabs., figs

[en] Barriers to competitive supplier entry such as California's wholesale-price pass-through model can provide an almost insurmountable barrier to effective retail competition. The telecommunications, airline, and software industries provide lessons--positive and negative--on how creating competitive wholesale markets is insufficient to bring the benefits of competition to smaller consumers

[en] This second consultation paper issued by the United Kingdom Office of Electricity Regulation summarises the responses received to the first consultation paper and provides further information and thoughts on the main issues. These include: the coverage, duration and form of the price restraint; the licence conditions on non-discrimination; future arrangements for setting the maximum retail price of electricity; future arrangements for energy efficiency. Responses are sought from all those with an interest in any aspect of future price restraint. (UK)

[en] In October of 2009, the French Ministry of Economy asked the author to chair a work group on oil price volatility. The report resulting from that work was submitted to the minister on February 9, 2010. Based on the report, this article focuses on three major elements: (i) the operation of the oil market, with interacting physical basics and financial basics (ii) financial market regulation, more specifically commodities-derived product markets and current work in that area and (iii) the lessons one can draw from that exercise in terms of energy policy. Significant projects have been initiated on global, European and national levels. (author)

[en] Previous studies have found evidence of asymmetric price adjustment in U.S. retail gasoline prices in that gasoline prices rise more rapidly in response to a cost increase than fall in response to a cost decrease. By estimating a threshold cointegration model that allows for multiple regimes, I am able to test how sensitive this result is to outlying observations. In contrast to previous studies, I find little evidence of asymmetry for the vast majority of observations and that the asymmetry is being driven by a small number of outlying observations. (author)

[en] Mid 2010, the Office of Energy Regulation of the Netherlands Competition Authority published its study on the effects of the Dutch heat Act. This study was one of the reasons why the Dutch minister of Economic Affairs, Agriculture and Innovation initiated changes to the Heat Act. To get a picture of the effects of the Heat Act in its changed shape, the minister asked the Office of Energy Regulation NMa to map the effects of the adjusted bill.

[en] This paper examines recent evidence on the role that gasoline margins and volatility play in the asymmetric response of gasoline prices to changes in oil prices at different stages of distribution process. In a regression model with margins, we find that margins are statistically significant in explaining asymmetry between crude oil and spot gasoline prices, spot gasoline prices and wholesale gasoline prices, and wholesale gasoline prices and retail prices. In a regression model with input volatility, we find evidence that volatility is responsible for asymmetry between wholesale gasoline prices and retail gasoline prices. When both, gasoline margins and gasoline volatility are included in the regression, we find evidence supporting margins, the search theory, volatility, the oligopolistic coordination theory and an explanation of asymmetry. (author)

[en] Pricing policies of Canadian public utilities were examined. It was shown that under the existing set of rules the prices established are frequently below the marginal cost. This appears to be particularly true in the case of provinces that rely principally on hydroelectric resources. Study recommendations to bring electricity prices in line with marginal costs have had little success to date despite overwhelming evidence of large economic losses associated with the current institutional arrangements. This situation remains at the same time that governments apply high tax rates on incomes. By putting together two strands of economic literature, public choice and the theory of public utility pricing, this paper develops a simple model that explains why the median consumer prefers a low electricity price and a high tax rate. Hydro-Quebec survey data is used to confirm that these conditions are satisfied in Quebec. 17 refs., 1 tab