Asian economies should seize oil price plunge

The plunge in crude prices will give a much-needed boost to Asia’s oil-guzzling economies and provide governments a “golden opportunity” to implement crucial structural reforms such as cutting expensive energy subsidies. Experts say lower oil prices would ease inflationary pressures throughout much of Asia, allowing many central banks to either keep monetary policy on hold or reduce interest rates. Last month, the Asian Development Bank said developing countries could see an additional 0.5 percentage point of growth on average this year if oil prices remain low. But reforms are needed, analysts say, and among the most crucial and controversial is the removal of fuel subsidies.

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