WikiWealth

The regulation of any commodity has potential problems. These problems usually occur, because prices are too low, which leads to overuse of a certain commodity. Gas prices in China are artificially low, which leads to overuse and scarcity. Gas sellers can't realize a fair profit for their products and the government pays dearly for the fuel subsidiary. Any change in their policy will encourage grumbling among citizens, which could lead to political protest, especially if they made fixed arranges with a low gas prices in mind. … "Regulation of Gas Prices" has a significant impact, so an analyst should put more weight into it.