- Title: Mexico gasoline price hike is a 'responsible' measure: president
- Date: 5th January 2017
- Summary: MEXICO CITY, MEXICO (JANUARY 4, 2017) (REUTERS) GENERAL VIEW OF CEREMONY FOR THE CABINET RESHUFFLE LED BY PRESIDENT ENRIQUE PENA NIETO (SOUNDBITE) (Spanish) PRESIDENT, ENRIQUE PENA NIETO, SAYING: "There is no greater cost to a society than that of being irresponsible in looking after the stability of our economy, and that is why we must all take on the challenge of this adjustment in order to continue moving forwards." PENA NIETO WALKING AWAY FROM PODIUM AFTER SPEECH TLALNEPANTLA, MEXICO (JANUARY 4, 2017) (REUTERS) GENERAL VIEW OF ROAD BLOCKED FOR CARGO TRUCKS VEHICLES HELD IN BLOCKADE VARIOUS OF TRAILERS BLOCKING ROAD VARIOUS OF TRAILER DRIVERS IN BLOCKADE MORE OF VEHICLES TRAPPED IN BLOCKADE DRIVERS WALKING BETWEEN VEHICLES HELD IN THE BLOCKADE (SOUNDBITE) (Spanish) DRIVER WHO TOOK PART IN BLOCKADE, JUAN FLORES, SAYING: "(Pena Nieto) said it clearly, there won´t be any increases in gas prices, nor diesel or anything else, then after a short amount of time we already have increases in place, do you agree? Each one of us feels it in our families, as Mexicans." MORE OF DRIVERS TAKING PART IN BLOCKADE VARIOUS OF DRIVERS AND VEHICLES AFFECTED BY THE BLOCKADE (SOUNDBITE) (Spanish) DRIVER AFFECTED BY THE BLOCKADE, RICARDO SALAS, SAYING: "My family and I depend on my work, the situation is really bad, and all the information the government gives is that this situation is obligatory, the ´gasolinazo´, but the truth is it is not, we do not agree, I do not know what is going to happen in the future with these situations, it is more loss for the country." VARIOUS OF A SHOPPING CENTRE CLOSED BY THE BLOCKADE AND IN FEAR OF LOOTING VARIOUS OF CLOSED GAS STATION BANNER READING (IN SPANISH): "STEP DOWN PENA NIETO, YOU HAVE NO WORD" MORE OF CLOSED GAS STATION MEXICO CITY, MEXICO (JANUARY 4, 2017) (REUTERS) VARIOUS OF SENATOR OF THE DEMOCRATIC REVOLUTION PARTY, MIGUEL BARBOSA, ARRIVING AT NEWS CONFERENCE (SOUNDBITE) (Spanish) SENATOR OF THE DEMOCRATIC REVOLUTION PARTY, MIGUEL BARBOSA, SAYING: "We will propose a compromise with an urgent and clear resolution to urge the president to quickly present an initiative to reform the 2017 tax law, in which he should cancel the anticipation of the liberalisation of fuel prices, as a necessary measure to protect the economy of Mexican families." OPPOSITION SENATOR, MARIO DELGADO, PLACING STICKERS AGAINST THE RISE IN FUEL PRICES ON CARS BUS WITH A STICKER AGAINST THE RISE IN FUEL PRICES VARIOUS OF PEMEX GASOLINE STATION
- Embargoed: 20th January 2017 01:11
- Keywords: fuel prices Mexico Enrique Pena Nieto Pemex
- Location: TLALNEPANTLA AND MEXICO CITY, MEXICO
- City: TLALNEPANTLA AND MEXICO CITY, MEXICO
- Country: Mexico
- Topics: Budget/Taxation/Revenue,Government/Politics
- Reuters ID: LVA0015XO2BSZ
- Aspect Ratio: 16:9
- Story Text: Mexican President Enrique Pena Nieto said on Wednesday (January 4) that a double-digit gasoline price spike that took effect on January 1 was a "responsible" measure that the government took in line with international oil prices.
Government-set fuel prices jumped by between 14 and 20 in spikes derided by locals as "gasolinazos" in Spanish. This follows plans the government announced last month detailing a gradual, year-long, region-by-region price liberalisation for 2017.
"There is no greater cost to a society than that of being irresponsible in looking after the stability of our economy, and that is why we must all take on the challenge of this adjustment in order to continue moving forwards," said Pena Nieto in Mexico City.
The president´s comments came a day after state oil company Pemex said a "critical situation" had been reached in at least three Mexican states, where protesters blockaded fuel storage terminals.
Drivers continued the blockade on Wednesday, while many gas stations and shopping centres closed for fear of lootings.
"(Pena Nieto) said it clearly, there won´t be any increases in gas prices, nor diesel or anything else, then after a short amount of time we already have increases in place, do you agree? Each one of us feels it in our families, as Mexicans," said Juan Flores, a driver taking part in the blockade in Tlalnepantla.
"My family and I depend on my work, the situation is really bad, and all the information the government gives is that this situation is obligatory, the ´gasolinazo´, but the truth is it is not, we do not agree, I do not know what is going to happen in the future with these situations, it is more loss for the country," said driver, Ricardo Salas.
There were distribution problems in northern Chihuahua and Durango states, as well as Morelos state just south of the Mexican capital, due to the blockades affecting key terminals, Pemex said in a statement.
The company added that if the blockades continued, the operations of nearby airports could also be affected.
Opposition senator, Miguel Barbosa, said in a news conference on Wednesday that his Democratic Revolution party would push for Pena Nieto to cancel the proposed rises.
"We will propose a compromise with an urgent and clear resolution to urge the president to quickly present an initiative to reform the 2017 tax law, in which he should cancel the anticipation of the liberalisation of fuel prices, as a necessary measure to protect the economy of Mexican families," said Barbosa in the capital.
The ministry's price ceilings will be in effect through February 3. After that, the maximum price will be set bi-weekly, until February 18, when it will be set daily.
The move will phase out government-set gasoline prices, a practice that has prevailed in Mexico for decades, and replace them with market prices.
Analysts said the liberalization programme was likely to have an impact on inflation, which has already passed the central bank's 3 percent target due to a sharp peso depreciation. - Copyright Holder: REUTERS
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