| | |  Editorials | Opinions | December 2009 
Mexico: Fueling Inflation
 The News
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December 29, 2009
 |  | It is clear that the Presidential Administration needs the funds to operate, but with the increases that weren't supposed to happen, it is sending a negative message to the people. |  | | |
For the second time in December, the Felipe Calderon Administration increased the price of gasoline to $7.80 pesos a liter for the regular Magna.
The President went totally against the recent recommendation made by Congress immediately after the first price hike only last week. First the price rose from 7.72 pesos to 7.77, and then last Saturday consumers were slapped with yet another three-centavo increase.
No excuse has been offered thus far by the Administration other than the claim that increases are necessary to cut the cost of “subsidizing” gasoline as stipulated in the 2010 budget that will go into effect on January 1.
Since the increases went into effect before the budget, the message is that further increases are in store for next January.
It is, however, hard to believe that the Government is subsidizing gasoline.
Indeed what the government is subsidizing is an inefficient and over-staffed company as Pemex is.
Levying this new tax will surely not bring sympathy for President Calderon, who last January swore that gas prices would not be increased during 2009. There you go!
Gasoline is the bloodline of the economy and even if small, these increases will dig into the pockets of every citizen in this country and will force prices and inflation to go up.
It is clear that the Presidential Administration needs the funds to operate, but with the increases that weren't supposed to happen, it is sending a negative message to the people. |
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