It’s the same story, over, and over.
The principle is easy to understand, even by children. However, authorities continue to make the same mistake, again and again.
To refuse an increase of price for a product, or more generally to have a fixed price policy, could lead to a shortage of this product.
True in USSR. True in Zimbabwe. True in China (where authorities refused an increase of price for diesel and gasoline, leading refiners to… stop production !).
If something costs you 100 to produce, and if the governement forces you to sell at 90… would you continue to produce ?
It’s chapter 1 of “Economy For Dummies”. 
Secretary and Business Relation Officer of Siam City Cement Public Company Limited, Dr.Sathaphon Phetthongkham claims that due to high costs of living, the company will submit another price modification proposal to the new government.
He says cement consumption has shrunk by 4 percent as many mega-projects have been suspended due to sluggish economy and political uncertainty.
Dr.Sathaphon cites that price of coal, a major ingredient of cement, has increased from 45 US dollars per ton up to stand at 65 US dollars per ton. In this connection, the company has been burdened with 70 percent higher of production costs.According to Dr.Sathaphon, the company had asked for the price modification prior during the administration of Prime Minister Surayud Chulanont but was rejected. As a result, the company has had to shut down the operation of two production machines. ” (PRD)
As for Siam City Cement, we need to wait for further details (it could be just a power play to put the pressure on the authorities).
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