pemex pumps The price hike was less than originally announced.

New Year’s gas price rise was only 1.9%

Yesterday it was warned that there may be more hikes but the story changed again today

Finance officials seemed to be having second thoughts about gasoline prices when information appeared yesterday on the government website, Official Journal of the Federation.

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It was initially announced and reported that gasoline and diesel fuels would go up 3% January 1 and remain unchanged for the rest of the year. The monthly increase, or “gasolinazo” as it was known, would be eliminated.

But yesterday it was announced that while the New Year increase would be 1.9% rather than 3%, there were no guarantees that prices wouldn’t be hiked during the course of the year in order to address volatility in international energy prices.

Today they backtracked.

The finance secretariat advised in a prepared statement that prices now in effect — the December prices plus 1.9% — would be maintained throughout the year. The news release also confirmed that the new prices are actually maximums — individual Pemex franchises will have the freedom to adjust their prices downwards to be more competitive if they wish.

Liquid propane also went up 1.9% yesterday, and that price as well will not be subject to any change in 2015.

Finance officials also made it clear that the price hike is less than the anticipated rate of inflation — 3% to 4% — for the coming year, thereby reducing the cost of fuel in real terms.

Source: Milenio (sp)

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