Mexico: Price controls on gasoline to end Nov. 30

Event

State-imposed gasoline price controls will no longer be in effect beginning on November 30. Beginning on this date, fuel companies (notably state-run Pemex) will be able to charge market rates, meaning prices will vary from area to area. Although the government has assured citizens that prices will not rise significantly as a result of the policy change, market variations mean that price increases cannot be ruled out, which could prompt protests and other forms of unrest. In January 2017, a spike in fuel prices - nicknamed gasolinazo - triggered mass protests, as well as fuel shortages, looting, and roadblocks.

The liberalization of the gasoline market has already entered into effect in certain areas. The November 30 change will affect the remaining areas of the country, i.e. the central states of Aguascalientes, Colima, Chiapas, Estado de México, Guanajuato, Guerrero, Hidalgo, Jalisco, Michoacán, Morelos, Nayarit, Oaxaca, Puebla, Querétaro, San Luis Potosí, Tabasco, Tlaxcala, Veracruz, and Zacatecas, and Mexico City, as well as the southeastern states of Campeche, Quintana Roo, and Yucatán. This is coming a full month ahead of schedule for the southeastern states.

Context

The government is hoping the liberalization of the market will encourage the building of more service stations to address shortages in areas where demand currently outstrips supply. There are also hopes the move will hamper a thriving black market, involving regular incidents of often violent theft of fuel from tanker trucks and pipelines.

Advice

Individuals throughout Mexico are advised to avoid all protests, to never attempt to cross roadblocks without authorization, and to keep abreast of the situation.