• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 7 hours Oil prices going Up? NO!
  • 17 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 16 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 hours The Tony Seba report
  • 21 hours Oil prices going down
  • 1 day Could oil demand collapse rapidly? Yup, sure could.
  • 3 hours Saudi Arabia turns to solar
  • 15 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 2 days Oil Buyers Club
  • 9 hours Kenya Eyes 200+ Oil Wells
  • 8 hours Are Electric Vehicles Really Better For The Environment?
  • 2 days Gazprom Exports to EU Hit Record
  • 2 days Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 23 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Could Venezuela become a net oil importer?
  • 23 hours Tesla Closing a Dozen Solar Facilities in Nine States
Global Energy Advisory – 22nd June 2018

Global Energy Advisory – 22nd June 2018

Bottlenecks in the Permian are…

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

Mexico City

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

Oilprice - The No. 1 Source for Oil & Energy News