Public fury forces Mexican president to explain gas price hike

Mexican President Enrique Pena Nieto was on the defensive on Wednesday morning as he had to explain the recent hike of gasoline prices, which has caused an uproar across the country.

Since Jan. 1, gas prices around the country have gone up 14.2-20.1 percent. This led to furious protests across this country, with protests this week blocking highways in many major areas, including Chihuahua, Nuevo Leon, Coahuila, Puebla, Queretaro, Mexico City, Hidalgo, Guerrero and Veracruz.

Isolated acts of violence have continued throughout the week but Pena Nieto said that "this was not an easy decision to take. However, if we had not done so, the cost would be far worse."

"I call on society to listen to the reasons behind this decision," he added during a televised address.

The Ministry of Economy has said that the new gasoline prices were due to three factors: the international references prices for fuel, the costs of transportation, storage and distribution faced by Pemex, and other areas such as taxes and the commercial margins for petrol stations.

Until Feb. 3, the price of Magna gasoline will be of 15.99 pesos (0.77 U.S. dollars) per liter, which represents a 14.2 percent rise, while Premium gasoline rose 20.1 percent to reach 17.79 pesos (0.86 U.S. dollars) per liter. Diesel rose by 16.5 percent to 17.05 pesos (0.82 U.S. dollars) per liter.

Pena Nieto added that his government would not allow any abuses of the new policy. "There is no greater cost for a society than to not be responsible in looking after the stability of our economy. This is why we must all assume the cost of this rise going forward," he said.

On Tuesday evening, Pemex said that blockades at certain petrol stations were threatening the availability of gasoline in the states of Chihuahua, Morelos, Durango and Baja California.

However, on Wednesday, roadblocks were reported in ten states, including the major Mexico City-Puebla highway.

At the same public address, Pena Nieto said that he was changing the Minister of Foreign Affairs, removing Claudia Ruiz Massieu from the role and giving it to former Economy Minister, Luis Videgaray.

Videgaray resigned from that position in September after taking the blame for organizing a visit by president-elect Donald Trump to Mexico, which was roundly criticized across the political spectrum.

"Before the change in U.S: government on Jan. 20, the instructions for Videgaray are to accelerate dialogue and contacts," said the president. Equally, the new minister will "promote the interests of Mexico and the dignity of Mexicans. He will have to ensure the attention and protection to which Mexicans living abroad have a right, including many in the U.S."

source: Xinhua