EPN: It was Calderón's fault. EPN: It was Calderón's fault.

EPN blames price hike on his predecessor

In a new year's message, president also cites increase in international petroleum prices

In the face of continued protests against higher gas prices, President Enrique Peña Nieto tried again yesterday to explain and justify fuel prices that rose as much as 20% on Sunday.

ADVERTISEMENT

In a videotaped new year’s message, the president said he understood the anger that Mexicans were feeling but repeated his earlier argument that maintaining artificial fuel prices would have meant cutting social programs, raising taxes or increasing the national debt.

He also laid the blame for the situation on international prices and the administration of his predecessor, National Action Party president Felipe Calderón.

Peña Nieto said Calderón was not prepared to pay the political cost that would have been necessary to reduce gasoline subsidies. Instead, the president said, the Calderón administration lost nearly 1 billion pesos “burning up money to give away gasoline instead of investing it in public transit, schools, universities and hospitals.”

He also cited a 60% increase in international petroleum prices in the past year as another, external reason for the hike in gasoline and diesel prices.

The president addressed the country with yesterday’s message but he might consider delivering it again Monday at a meeting of state governors. At least one is not on side.

Sonora Governor Claudia Pavlovich, herself a member of the governing Institutional Revolutionary Party, yesterday expressed her disapproval over the implementation of the price increases.

ADVERTISEMENT

She was critical of the manner in which they were implemented and declared it was not the right time to do it. Nor were state governors informed, she said.

“They never told us they were going to raise prices in such an unexpected and abrupt way . . . .”

Pavlovich said she planned to take her concerns to Monday’s meeting of Conago, the national governors’ conference.

Meanwhile, Calderón has been silent with respect to the president’s remarks, focusing instead on Donald Trump.

In a tweet directed at the United States president-elect, Calderón wrote: “The more jobs you destroy in Mexico, the more immigrants the American people will have. Think a little!”

Source: Milenio (sp), El Universal (sp)

Stories from our archives that you might enjoy

  • Vlad the Impaler

    No problem…workers making 80 pesos a day don’t have cars. The 20% extra for fuel will fund more politicians vacations and extravagant homes. Not enough that the peso has been devalued 20% in about 3 months. Every person in Mex. has lost the ability to buy import items and have vacations outside of Mex. It is all a big tragedy. no wonder so much unrest. It appears it will get much worse.

    • G.b. Adams

      Not so bad for us Gringos living here on our US retirement funds…When we moved here 12 years ago, 10 pesos = 1$.. Now it’s 20 pesos to the dollar! The corruption in the Mexican government is the problem

      • iskinder

        Great! The Mexican Dream for you all!

        • David L. Allison

          It is no dream but a nightmare watching our fellow residents and the citizens of the 90% of Mexico suffer. Not all expats are as rude and selfish, critical and mean spirited as some of those who post with constant attacks on the people and government of the country that allows us to live her and protects our safety often better than the safety of their citizens.

      • David L. Allison

        I demur from your conclusion. Corruption is the result, not the cause of the economic problems in Mexico or the US though both suffer from it. One major cause for the economic and social instability of both countries is the devastation of the ill-advised drug war that has poisoned all of Central America, Mexico and the USA. Without the illegal money to pass around to buy favors and influence, the corruption would diminish.

        Legalize all drugs, beginning with marijuana and continue with opiates and psychedelics. Like intelligent civilized societies are demonstrating, recognizing that drug abuse is a health, not criminal problem, will depress the corruption and at least convert it into the legalized bribery and corruption that exists in US politics and corporations. That would be a great first step to ending corruption.

    • iskinder

      This gas crisis is nothing compare to the devastation that the people of Mexico could see in our lives if we end facing another bankruptcy at the end of this PRI presidency. Mexico can’t keep depending on oil profits to fund the national budget. — http://www.eltesorodelajumentud.info/devaltab.html

  • G.b. Adams

    20% increase at one time? Typical Mexico.. look how they’ve jacked around with the financial requirements for us Gringos to live here over the years!…Up, then down then up again. It’s all a ready-shoot-aim firing squad approach to governing. The joke of an educational system in Mexico is showing up. The people have no ability to understand international oil prices or the cost to the rest of us to subsidize the gas price of your 30 year old, out of tune, POS Chevy pickup.

    • iskinder

      There is no doubt that the international prices of gasoline affect the Mexican economy. However, what affects moreour society is the government’s dependency on Pemex to fund the national budget (at arate of 30/40% every year).

    • David L. Allison

      Perhaps the IVA should be expanded to include luxury cars, yachts, airplanes and air travel tickets along with an increase in the income taxes of the Mexican one percent of truly wealthy. In fact, such a plan would be a great idea for the USA as well, along with an increase in the inheritance taxes on all estates over 4 or 5 million dollars.

  • doximom

    EPN is taking lessons from Obama, blaming his predecessor on his failings…. Shame.

    • David L. Allison

      Difference is that Obama was provably correct in blaming Bush’s unpaid for illegal invasion of Iraq and his unpaid for tax cuts on the wealthy for much of the US economic problems when Obama was elected. EPN has only made the allegation without providing any data.

      Part of the economic problems in Mexico are a direct result of the US advocacy for fracking all over the world, increasing water pollution and lowering the world price of oil. OPEC and especially our friends the Saudis have been dumping oil as fast as they can pump it as they recognize that the decades of oil dependency for energy are coming to an end much more quickly than anticipated. They have all, including Mexico, depleting reserves as fast as possible generating a fire sale atmosphere world wide.

      • Tampa

        So how does fracking in the US which lowered the cost of oil contribute to rising gasoline prices in Mexico?

        • David L. Allison

          Not just in the US but in all of the countries in which the US (and corporations) took fracking into mainstream, dropping the value of oil with its oversupply drove countries like Mexico, dependent on oil revenues to privatize their public resources and introduce ‘free market’ i.e. uncontrolled rises in the cost of gasoline in order to raise necessary funds to run the government. Neoliberalism and austerity are a failure greater than public ownership ever could be.

  • Praise Kek

    This is what happens after all these years of oil nationalization. It will take a long time to shake out all of the corruption in PEMEX. Healthy competition and investment in Mexico will help.

    In the US the price of oil goes up and down frequently, why not let the same happen in Mexico?

  • JG
  • Peña Nieto is following Obama’s script. It’s Bush’s fault! It’s Calderon’s fault!

    • David L. Allison

      The difference is that the destruction of the US economy was in large part paid for by unpaid for tax cuts on the rich going back to Reagan and never reversed by the Democrats and unpaid for illegal war in Iraq and the corruption of the Military Industrial Complex all driven by Bush. So, yes it was Bush’s fault, regardless of the lies and mis-directions of the Republicans and their right wing allies.

      As for Calderon, The President and his supporters need to provide some data to back up his neoliberal allegations. He may be right but this abrupt increase in price may prove to be more damaging than the problem that the administration was trying to solve.

      • Praise Kek

        ^^^^^^nonsense on stilts^^^^^^^

  • cooncats

    Denationalize Pemex if you want reasonably priced fuel.

    • David L. Allison

      You dream the impossible dream of the benefits of the alleged “free market”. It is all controlled by international cartels of oil producers and speculators. The internal conspiracies will simply transfer the income of the Mexican people to the transnational corporations. Prices will not come down from privatization of the public trust resources. The corruption will simply shift from public to private operations.

      Why does PN not close the theft of gasoline and sales of the stolen gasoline by the cartels in the open market? Because he does not believe the pictures and the data supplied by his own enforcement officials? If the price of essential goods is being raised 20%, the minimum wage should be raised by at least an equal amount. Is it possible that Mexico, like the United States, could raise taxes only on the very wealthy to pay for the necessary subsidies and payments for education and basic necessities?

  • Davido

    Its pretty low to play the blame game….look, mexico is such a beautiful country the tourism alone can rake in billions focus on improving the lives of all the citizens and not self, if the country grows economically everyone benefits, free education isnt a bad idea for lower income families from primary to tertiary it has worked in many other countries criminal activites can be lowered by education.. from and early stage.
    raising the price on gas by 20% is only going to increase everything else thats dependant on fuel.. thats almost everything …. this system of governance isnt working anymore the people need more power over governments.

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT