This April, German development agency the GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit) is due to publish a series of International Fuel Prices Observatory factsheets, focused on fuel price changes in the Middle East and North Africa (MENA) and the Gulf Cooperation Countries (GCC).

Each factsheet presents a compact two-page summary on fuel prices in each of the 18 countries reviewed, offering information on: fuel price in US$ and local currency; price composition (such as production costs, taxes, fees and margins); pricing policy; a transparency-traffic-signal on price composition and pricing policy; and online information sources. Some only contain very limited data, due to the lack of information about fuel price composition in a number of MENA and GCC countries.

In an overview of the collection, the GIZ concluded that, as a result of the revolutions in the region, and amid aspirations for immediate improvements in the standard of living, no upward adjustment of prices can be expected in the short term. In the medium term, however, it suggests that those countries which ultimately develop new social contracts, with increased political participation and transparency, have the potential to correct energy prices such that they reflect their true internal and external costs.

The series also recommends that countries in the region:

• Provide full transparency on the composition of fuel prices and the level of subsidies (per liter) and their pricing principles.
   
• Introduce flexible pricing mechanisms (following the example of South Africa and regional examples, such as Tunisia and Jordan), even if initially at subsidized prices.
   
• Gradually increase prices after these reforms have taken place, with broad involvement of relevant social groups and incentives for the better management of energy and transport demand.
   
• Foster regional dialogue on the pricing of fossil fuels and ways to reduce the economic and social effects of price increases.

The International Fuel Prices Observatory factsheets will soon be available at the GIZ's website.