Governments around the world are using the prolonged period of lower oil prices to slash fuel subsidies that were designed to assist the poor, but often turn out to cripple government budgets, stimulate waste and benefit the rich. The moves have not met with much popular resistance, as was feared. Oil producers Saudi Arabia, Oman, the United Arab Emirates and Venezuela have increased prices for gasoline and diesel, following earlier steps by net oil importers like India, Malaysia and Indonesia. Countries have a perfect chance to act. "The current low-oil-price scenario is an opportunity to reform subsidies, reduce market distortions, and cut fiscal costs without risking political disruption," says a subsidy report by the Asian Development Bank.
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