HALF of the world’s population enjoys fuel subsidies. This estimate, from Morgan Stanley, implies that almost a quarter of the world’s petrol is sold at less than the market price. The cheapest petrol is in Venezuela, at 5 cents per litre. That makes China’s pump price of 79 cents seem expensive, but even this is a bargain compared with $1.04 in the United States and $2.35 in Germany (see chart).
…Across the emerging world, governments fear that lifting fuel prices will hurt the poor and so trigger social unrest. Yet fuel subsidies are an inefficient way to protect the poor: they mainly benefit the richer owners of cars and air-conditioners, and favour energy- and capital-intensive industries, rather than those that create most jobs. An IMF study of five emerging economies found that the richest 20% of households received, on average, 42% of total fuel subsidies; the bottom 20% received less than 10%. That money would be better spent on health, education and infrastructure. Not only would this benefit the poor, but higher prices would also help to dampen global oil consumption, and hence the price of oil.
And at this writing, Cdn prices are around $1.45/l. And Canada is an exporter (but with heavy taxes, not subsidies).
Brian — Sounds like better policy in Canada than US — noting that I know nothing at all about Canadian energy policy.