Mexico's Gas Deregulation Leading to 2017 Price Hike Elena Toledo - PanAm Post
go to original December 25, 2016

The liberalization of gas could cause problems for lower and middle class families (Diario de Morelos)

The Energy and Energy Regulatory Commission and Petróleos Mexicanos (Pemex) announced it will be deregulating gas in Mexico in March 2017, a process that will cause gas prices to rise.

A percentage for how much it will increase has not yet been announced, but estimates predict between 15 and 22 percent. The Citibank Center for Economic Studies estimated that the increase will be 22 percent while the gas station operators organized in the Onexpo (National Organization of Oil Exporters) predict that the increase will be 15 percent.

“We’re in the process of defining the numbers,” General Director of Pemex Jose Antonio González Anaya said. “But I think that the important thing is to have clear that things cost what they cost, and the price of oil rose, yes, but it also increased in Norway, a country that is a much more surplus oil producer, much bigger, but it exports much more than Mexico and the price of gas there is more than two and a half times that of Mexico,” he said.

“When I came to Pemex the price of the oil of the Mexican mix was US $18.90; today it is US $45, which benefits Pemex and the country, but at the same time that makes the price of gasoline go up. The exchange rate was moved so that we are going to have to adjust. We are in the process of looking into it,” González Anaya said.

Mexican lawmakers have asked the federal government to allow the deregulation of fuels to be postponed in Mexico so that the increase does not affect consumers to a greater extent.

Read the rest at PanAm Post

Related: Clandestine Theft of Fuel from Pemex Pipelines Leaves 10 Mexican States with Gasoline Shortages (IANS)

Related: There Are 946 Private Gas Stations in Mexico (The Fulano Forum)

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