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Refinery deregulation in developing countries
Author(s) -
Meier Peter
Publication year - 1990
Publication title -
natural resources forum
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.646
H-Index - 49
eISSN - 1477-8947
pISSN - 0165-0203
DOI - 10.1111/j.1477-8947.1990.tb00379.x
Subject(s) - oil refinery , refinery , deregulation , refining (metallurgy) , developing country , scrutiny , debt , economics , business , international economics , economic policy , natural resource economics , market economy , finance , economic growth , engineering , political science , chemistry , law , waste management
For much of the 1980s refining has been unprofitable. The continued operation of small refineries in oil‐importing developing countries has therefore come under intense scrutiny, especially by the international financial institutions concerned with high levels of external debt. This paper examines the specific case of Morocco. Even though refining may be unprofitable at the world's export refineries, refining may still be part of the least‐cost solution to meeting developing country petroleum demands as a result of transport differentials. Unlike some other refineries in Africa, those of Morocco are well run, and closure is unwarranted. Rather the need is for regulatory and pricing reform, such that refiners can respond more flexibly to changes in world markets.