Peña Nieto: preserving economic stability. Peña Nieto: preserving economic stability.

‘I share your pain’ over gas prices: Peña Nieto

But president says it was a necessary and 'responsible measure'

President Enrique Peña Nieto told Mexicans today that he shared their pain over the big hike in fuel prices that went into effect Sunday, but declared that the alternative would have been greater cost and more pain for the country.

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In a live video address from his official residence, the president said that “without doubt this measure is one that nobody would have wanted to take.”

“We must all accept the challenge of this adjustment in order to move forward.”

Peña Nieto explained the increases, which on average raised prices by 15%-20%, were in response to international prices and not a result of the government’s reforms.

“The adjustment in the price of gasoline is not a result of energy reform or tax reform, but a reflection of the increase in international gasoline prices . . . .”

The move was a “responsible measure consistent with what I have decided is a priority for our government,” he said.

Not to have raised prices would have been a threat to that priority, he said, which is “to preserve our economic stability.”

The increases, which applied to both gasoline and diesel, have triggered angry protests across the country since Sunday, along with warnings that food, transportation and other costs would be severely affected.

Source: Milenio (sp)

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  • Cam Nante

    Sadly, Peña Nieto’s government has been a dismal failure, in so many ways.

    • Güerito

      There is one good side to the disastrous EPN term. It means that almost certainly PRI will not win the presidency in 2018 🙂

  • Three score and ten

    Anyone have any thoughts as to why gasoline prices should see a sharp increase in price while the price of oil is still half of what it was a couple of years ago?

    And there’s no way he can “share the pain” of the people who make 1/10 of what he does, but still need cars to go to work.

    • K. Chris C.

      Socialism/Communism. A violence backed government monopoly like Pemex loses access to prices. Prices carry market information and enable the rationing/allocation of resources. The result is an inefficient leviathan oriented only to serving pols and crats instead of customers.

      The Soviet Union could not even reliably provide toilet paper to their subjects.

      An American citizen, not US subject.

  • MortimerSnerd

    ““The adjustment in the price of gasoline is not a result of energy reform or tax reform, but a reflection of the increase in international gasoline prices”

    Tough to buy into that rationale… …if international gas prices are so high…then how is it that US stations can still retail gas as low as $1.89 a gallon in Arizona and still make a profit, even taxed-to-death Canadians enjoy lower retail gas prices now…

  • Concerned

    Mexico sells their oil to other countries to be processed. Mexico does not produce gas anymore for Mexican people. So if they are buying on the open market just like the US and other countries, why are they now at $3.60 for a gallon for regular? Just across the border in El Paso regular can be bought at Costco for about $180 a gallon. Strangely in Juarez they have matched the prices in El Paso because people were just crossing the border to fill up. One gas tank filled in El Paso can represent a saving of 27 dollars on a 15 gallon tank compared to filling up in Chihuahua and elsewhere in Mexico. The minimum wage is $5.50 per day and the maquilardors’s pay about $60 a week. So you can see why people are upset with such a dramatic price increase while they were being screwed before the increase. The gas stations work on a lower net overhead because of property value, low wages and more. It just does not equate to anything other than greed and robbery. Want to help the economy grow in Mexico lower the price of gas so more people can afford to drive. You can make up the difference with more volume of gas being sold and collect more taxes on each gallon.

  • As oil is a diminishing resources and is a major contributor to climate change, we all need to wean our societies off of it. We can expect more problems like this over the next several years as the dominant countries shift as much of the pain as possible onto the formerly colonized countries, a reflection of the past patterns of xenophobia and imperialism.

  • Douglas Antonio Novoa Gonzalez

    The Mexican Government are elite individuals that do not care about the the rest of Mexican citizens. The Government cut the funding of PEMEX to repair infrastructure, find oil, all in order to privatize oil and sell it to foreign companies going against what the Mexican constitution states.

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