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Mexican President Not Going Back on Decision to Deregulate Gas Prices

By: Elena Toledo - @NenaToledo - Feb 22, 2017, 7:28 am
Peña Nieto
Peña Nieto revealed that his government seeks to diversify gasoline imports, since 80 % currently come from Estados Unidos. (El Debate)

EspañolMexican President Enrique Peña Nieto is sticking to his decision to deregulate the gasoline market.

On Monday, he spoke about the controversial policy change, which has in recent months caused a flurry of protests and backlash, assuring everyone that he would not reverse the decision.

“Deregulation will bring investments in infrastructure and will create a very different scenario, a better one,” he said. “Expected investments are around US $16 billion.”

He added that a “softening mechanism” will soon help to avoid “large overnight fluctuations.”

In case there is a strong price change tendency, he said there will be a period of up to 100 days to correct prices. The rise and fall under normal conditions will mean that prices will vary an average of three cents day to day.

The Energy Regulatory Commission made gasoline prices that will go into effect on Tuesday, which has a variation of one cent. nationwide, while in Guadalajara and Monterrey it will vary by two cents.

Peña Nieto said the measure will allow Mexico to “arm itself against a more complicated scenario” and reaffirmed his commitment to preserve economic stability: “Any scenario that puts economic stability at risk becomes a political risk.”

 

Regarding Mexico’s relationship with the United States in the fuel market, Peña Nieto said, “gasoline imports create vulnerability towards the United States, that is why we have accelerated a search for options. Americans are also dependent on us. We are their main gas and gasoline buyers. ”

At least 80 percent of gasoline exports from the Gulf region are directed to Mexico, the same situation with 65 percent of gas exports, so the Mexican president said that “diversification is urgent and we are working on it intensely, but it will take years. ”

“Our relationship with the United States is unclear,” he said. “We are not going to see clear signals from NAFTA before June, while our disagreements remain in square brackets. Time is our ally when it comes to our relationship with the United States,” he said.

Source: El Economista

Elena Toledo Elena Toledo

Educator by trade, social-media apprentice, activist for a democratic Honduras, and free thinker. Follow her on Twitter @NenaToledo.