Developing nations have subsidized fuel to ensure peace and to support economic growth. But those policies have begun to falter.Malaysia and India, groaning under the weight of high fuel prices, have just begun cutting subsidies. Analysts such as Michael Lynch of Strategic Energy & Economic Research in Winchester, Mass., said others will follow.
"At this level of prices, very few countries can afford subsidies if they are importing," he said.
But there is political pressure to help consumers being hurt by high prices.
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