IMF warns on US slowdown and oil risks

International Monetary Fund (IMF) head Rodrigo de Rato said yesterday fuel prices should be raised in countries such as the US and China, the two largest consumers, as current costs discouraged conservation and resulted in damage to the environment. The wealthy benefited disproportionately from lowered fuel costs, said De Rato.

Governments should stop subsidising fuel and engage in energy policies that went beyond the needs of their own country. They should develop “safety nets” to protect the poor from high energy prices, he said
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“Sudden or unexpected supply disruptions in the oil market — should they occur — could have more adverse effects than have occurred up to now.”

Business Day