Price controls = shortages.

Is the correct answer. Price controls simply do not work in a fiat currency system backed by nothing and dependent on inflation to survive.

To extend the equation further. Price controls = shortages = black markets.

Bus is free, Electricity is free, Train is free. Health care is only 30 Baht (US$1), plus don't forget, 2,000 Baht free for everyone (when govt fist form). So paying a few bath more for egg, sugar and cooking oil; so what. This is best govt ever. I will vote for him again and again.

Price control as well as wages/salary control have been employed by governments through out history. The Thai merchants seem to view any government price ceiling in the same manner the general population view any guideline/law, it is obeyed or adhered to if it suits them. I saw pork priced at 180 baht/kilo yesterday in CM when live pigs are going for 50 to 52 baht/kilo.

If the penalties for non compliance is strong enough and enforced uniformly the system can and will work. The price gouging has been rampant in many forms since oil peaked at 150+_/bbl. When there is no real competition and price fixing is readily apparent from the producer to end user, what do you expect.