I wrote previously about the billionaire Ambani brothers of India. A decision on May 7, 2010 by India’s Supreme Court rewards Mukesh Ambani by permitting the national government to force a 79% increase in the price of natural gas that he sells his brother. India is an energy-starved country importing 70% of its oil. Despite my generally favoring free-market economics, I have to agree that the Indian Government needs to control its energy prices.
Many international contracts contain a safety valve in the form of change-of-law provisions, but this sales agreement between Mukesh and Anil Ambani did not. Thus, Anil Ambani may blame himself for the language being re-written to his disadvantage.
In the United States, we are accustomed to government regulation of private interests. Taxation is our biggest example, but there are many. Others include the Federal Communications Commission (airwaves), the Department of Commerce (import duties), and state government (eminent domain, nursing homes and cable TV). Considering our losses from the near meltdown of investment banks and the collapse of the Gulf of Mexico Deepwater Horizon oil rig, our Government should be regulating even more.