Oil prices are regulated in virtually every developing country. Economists, oil businessmen, politicians, and bureaucrats usually have diverging views on the best price for petroleum products. Costs, government objectives, and political influences all affect energy price determination (see Figure 1). The outputs-sets of energy prices over time-influence the welfare of particular groups in society as well as, naturally, society as a whole. Some sets of prices may be more efficient than others, some may be regarded as more equitable.
