Mexican gasoline and diesel fuel prices to go up August 1

Civilian protesting against "gasolinazo" in Mexico City (Photo: La Jornada)

The Mexican Secretariat of Finance and Public Credit (SHCP) announced that starting August 1, the price of Magna gasoline will go up to $ 13.96 pesos per liter, Premium $ 14.81 pesos per liter and diesel $ 13.98 pesos per liter.

These prices represent an increase of 56, 44 and 21 cents, respectively, compared to July prices. This is the highest gasoline price increase in the last 2 decades.

With regard to that observed in August last year, announced prices will be by 3.0 percent higher, both in the case of Magna and Premium gasolines, while diesel will be only 1.5 percent higher.

The increase will cause a rise of 0.21 percent in the inflation rate, according to market strategy firm, Finamex Casa de Bolsa.

“Additionally, we must consider the indirect impacts of higher prices of gasoline, for example, transportation costs, among others, besides considering that most of the goods in this country are transported by road. We will be closely monitoring these impacts to adjust our forecast of 3.2 percent for the year-end annual inflation, “said Guillermo Aboumrad, Finamex CEO.

Civilian protesting against "gasolinazo" in Mexico City (Photo: La Jornada)
Civilian protesting against “gasolinazo” in Mexico City (Photo: La Jornada)

The Finance Ministry argues that the increase in fuel prices for August is due in turn to the upturn in international reference prices for fuel prices, reflecting the recent recovery in crude oil prices.

Fact is, the people of Mexico is absolutely convinced that this “gasolinazo” (as it is commonly known), is just one more example of the false promises of President Enrique Peña Nieto, who sustained that with the so called “Energy Reform”, the prices of fuel and electricity will be actually going down, which in fact has been quite the opposite.




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