The Survey of Price Correction of Oil Products and Its Effect on the Demand Management in the Elected OPEC Countries

After the oil crisis in the 1970’s decade and severely oil price increasing, the developed countries concentrated on the demand management policies of energy, particularly in oil demand. But on the opposition, in the developing countries that have immense oil reservoir, the per capita oil products consumptions always have increasing trend. On the other hand, for the abundant institutional problem in these countries, the use of only price policies for the demand control, always have been doubtful. Thus, this research has tried with the use of unbalanced panel data, to survey the income and price elasticities of oil products in ten elected OPEC countries that consist of Algeria, Ecuador, United Arab Emirates, Indonesia, Iran, Saudi Arabia, Libya, Kuwait, Nigeria, Venezuela, and function of price policies in the demand management in the 1982-2007 intervals. Results indicate that price variations have no significant effect on the consumption of these products. But per capita income variations can have significant effect on the oil products in these countries. So the use of non-price demand management approaches beside the price approaches can examine as the better policy instrument.