Prime Comment #39

The Petroleum Price Stabilisation Fund: A Policy in Search of a Mechanism

The government has announced the establishment of a “Petroleum Prices Stabilisation Fund (PPSF)”, characterising it as a measure to protect consumers from fluctuations in international oil prices. The concept appears to be fascinating. However, in practice, it confronts fundamental contradictions, making it unlikely to perform as intended. The first issue is theoretical in nature. Funds for petroleum price stabilisation do...