Insight

The cost moves

By QUAH BOON HUAT

PRICE controls do not eliminate cost. They relocate it.

This is not a criticism of Malaysia’s fuel subsidy system; it is a description of how price controls work.

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Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

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Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

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FuelSubsidy , PriceControls , FiscalPressure , OilPrices , EnergyPolicy , MarketDistortion , SupplyDemand , EconomicImpact

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