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Applied Economics Letters Volume 20, 2013 - Issue 1
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Original Articles

Fuel price transmission mechanisms in Portugal

Francisco Silva CEEAplA, University of the Azores, Rua da Mae de Deus, Apartado 1422, Ponta Delgada, 9501 801, PortugalCorrespondence[email protected]
,
Maria Batista CEEAplA, University of the Azores, Rua da Mae de Deus, Apartado 1422, Ponta Delgada, 9501 801, Portugal
&
Nelson Elias DEG, University of the Azores, Ponta Delgada, Portugal
Pages 72-75 | Published online: 24 Apr 2012
 
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Abstract

This study aims to analyse the behaviour of fuel prices at the pump (unleaded gasoline and diesel) in Portugal, relative to positive and negative variations in Brent crude oil price. Applying an Autoregressive Distributed Lags (ARDL) model to weekly time series data for the period of January 2004 through May 2009, we detected some signs of asymmetry in the transmission price mechanism. However, these patterns are not statistically significant enough to reject hypotheses of symmetry in the price adjustment mechanisms of fuel in Portugal.

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