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Why does the government set maximum prices on fuel

Why does the government set maximum prices on fuel We’ll talk about why the government set maximum fuel prices on this page. The government occasionally controls the cost of specific commodities and services, including gasoline and diesel. The minimum and maximum fuel costs may be determined by the government.

Reasons for the Government to regulate Fuel Prices

Below are some reasons why the government may choose to set a maximum price on fuel:

1. By setting up a maximum price on fuel, the government is able to make some goods less expensive to the end-users. Example: food.
2. Make some goods more expensive in order to benefit certain sectors.
3. To stabilise prices by preventing rapid fluctuations in the price of food

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