Gasoline To Increase In Price In Mexico; Then Based On Market -- December 31, 2016

Updates

January 2, 2016: as usual, the MDW blog is foreshadowing what the New York Times will be reporting. The credit goes to the readers who send me the links.

The New York Times is reporting that Mexicans are protesting the increase in the price of gasoline:

Small groups of protesters blockaded some roads and gasoline stations in Mexico on Monday to protest a government price deregulation that sent the price of fuel up by as much as 20 percent over the weekend.

One group blockaded a privately owned gasoline station on Mexico City's main boulevard, shouting: "The people, united, will never be defeated!"

"This will increase the cost of living for all Mexicans. It will make more expensive transportation, basic food stuffs, food, and it will ultimately hit Mexican families," said Rafael Sotocruz, a nurse who was protesting at the station.

On a busy highway leading into the capital from the west, another group blocked traffic and held up a banner reading "Enough already!"

Original Post

 

There have been several stories about gasoline consumption in Mexico in the past few days. Now this:

Mexicans are bracing to kickstart the New Year on a sour note, with protests planned against the government's huge hike in gasoline prices.

President Enrique Pena Nieto has promised that fuel prices will fall thanks to his landmark 2014 energy reform, which ended a seven-decade-old monopoly held by the state-run firm Pemex.

The government plans to end subsidies and let the market dictate prices in March, but Mexicans will feel the pinch at the pump before they start falling.

The finance ministry announced Tuesday that the price of gasoline would increase by as much as 20.1 percent to 0.88 dollars per liter on January 1, while diesel would rise by 16.5 percent to 0.83 dollars.

The price ceiling will be adjusted daily from February 18, before letting supply and demand determine them in March.

• A gallon = 3.78541 gallons. More or less. 
• $0.81 x 3.78541 = $3.33 / gallon.

Really? In Mexico?

We're paying about $2.20/gallon here in the DFW, Texas, area.