• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 23 mins Is Europe heading for winter of discontent with extensive gas shortages?
  • 18 hours Sand Powered Batteries for Heating Industries and Homes
  • 5 days Once seen as fleeting, a new solar tech proves its lasting power
  • 5 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 9 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 9 hours "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 2 days Bloomberg - "Hedge Funds Hit by ‘Onerous’ ESG Rule Turn to Lawyers for Help"
Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Oil Price Hike In Mexico Causes 400% Inflation Increase Compared To 2016

The increased price of gasoline in Mexico is causing inflation to increase in the North American country, according to a new report by Prensa Latina, which cited data from the National Institute of Statistics and Geography.

The government increased gasoline prices on January 1st. Right after the change, inflation began its upwards journey. In March, the peso inflated in value by 0.61 percent – four times the rate of inflation during the same month last year.

Oil-related products have increased in price by as much as 17.09 percent, when calculated on an annual basis.

Mexico is in the midst of an oil sector liberalization that will allow foreign companies to operate in the nation’s lucrative oil and gas sector for the first time. The process required a 20 percent price hike in fuel prices at the beginning of the year. The sudden jump caused violent protests that led to 600 arrests and one police officer’s death.

On New Year’s Day, when the policy took effect, the cost of a gallon of standard-grade unleaded fuel was $2.95, up 14 percent from the price of $2.60 on December 31st. The price of premium fuel rose by up to 20 percent, according to the LA Times.

Related: Tanker Traffic Points At Much Tighter Oil Markets

Mexican President Enrique Peña Nieto had promised that fuel prices would go down with the energy sector reforms, so the increases have made it easy for opposition parties to spark protests.

The Mexican economy is already hurting from 2.5 years of low oil prices caused by a supply glut, though its price hedging strategy has prevented the effects of the market downturn from being as bad as it has been for countries with similar economic compositions. Last year, the country earned a record $6.4 billion from contracts brokered with large banks, including JPMorgan Chase, Goldman Sachs, and Citigroup.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News