Protesters win Mexican gas price hike delay


Following privatization of large parts of the state-owned national oil company, Mexican President Enrique Peña Nieto gave his people a New Year’s present — a twenty percent hike in the price of gasoline.

First, some background.

Big Oil is still smarting over the 18 March 1938 decision of Mexican President Lázaro Cárdenas to nationalize foreign oil company holdings in the midst of a sometimes violent strike by Mexicans employed by U.S. and Anglo-Dutch oil companies.

The result was the creation of Petróleos Mexicanos, better known as Pemex.

In recent decades, as the neoliberal ideology metastasized, aging infrastructure and politically backed corruption took their toll, as new corporate extraction technologies and aging oil fields caught Pemex in a double bind.

Neoliberalism dictated the solution: Privatize.

So in 2014 Peña won congressional backing to sell off the rights to all new oil fields, leaving Pemex with the aging existing fields and those rapidly obsolescing pipelines and refineries.

Stuck with the increasingly costly side of the deal, Peña ordered the price hike.

The gasolinazo [gasoline punch], which now meant a tank of gas cost more than a minimum wage worker’s daily pay, sent Mexicans pouring into the streets, blocking off roads, barricading the U.S. border, and engaging in violent, sometimes lethal, confrontations with police and the military.

And now their actions have borne fruit.

From teleSUR English:

The Mexican government announced late Friday that it would postpone a second scheduled hike in gas prices, known as the ‘gasolinazo’, in response to the massive protests which have taken place since the first price hike at the start of January.

The Secretariat of Finance and Public credit declared that for the next two weeks the maximum prices for both regular gasoline and diesel fuel will remain the same since prices here hiked upwards of 20 percent on Jan. 1 2017.

The announcement came after protests continued to rock Mexico this week over the massive spike in gas prices which has crippled much of Mexico’s economy and led to massive social upheaval.

Since the Jan. 1 ending of fuel subsidies which led to the price hike, more than 500 people have been arrested throughout the country during protests which saw tens of thousands of people taking the streets, hundreds of gas stations closed, and a reported 250 stores looted.

Protests continued Friday and more were expected for Saturday in anticipation of the hike.

“The austerity measures already announced by the Government of the Republic, as well as the recent evolution of the exchange rate and the international price of gasoline, have created the conditions to keep the maximum prices unchanged during the indicated period,” the secretariat said in a statement release on Friday.

Critics have accused Mexican president Enrique Peña Nieto and other government officials of ransacking Mexico’s state oil company, Pemex, which has undergone a gradual privatization process in recent years that has broken up the longstanding monopoly.

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