New Year’s gas price rise was only 1.9%

Finance officials seemed to be having second thoughts about gasoline prices when information appeared yesterday on the government website, Official Journal of the Federation.
It was initially announced and reported that gasoline and diesel fuels would go up 3% January 1 and remain unchanged for the rest of the year. The monthly increase, or “gasolinazo” as it was known, would be eliminated.
But yesterday it was announced that while the New Year increase would be 1.9% rather than 3%, there were no guarantees that prices wouldn’t be hiked during the course of the year in order to address volatility in international energy prices. They have since backtracked.
The finance secretariat advised in a prepared statement that prices now in effect — the December prices plus 1.9% — would be maintained throughout the year. The news release also confirmed that the new prices are actually maximums — individual Pemex franchises will have the freedom to adjust their prices downwards to be more competitive if they wish. Liquid propane also went up 1.9% yesterday, and that price as well will not be subject to any change in 2015.
Finance officials also made it clear that the price hike is less than the anticipated rate of inflation — 3% to 4% — for the coming year, thereby reducing the cost of fuel in real terms.
Source: mexiconewsdaily.com

3 comments

  1. As the price of a barrel of oil on the world market is continuing to go down and is now under $50 US per gallon , Saudi Arabia has announced that due to the rapidly declining demand for oil, the price will likely to continue declining for some time.

    In San Francisco, one newspaper headline said that with the drop in gasoline this past year, over 50 percent, shoppers are heading to the stores with money in their pockets saved from the lower gas prices, and that the stores will see larger sales figures this year.

    Those countries that depend on a high price of oil, over $100 per barrel, are , or will be , in a finical crises. Likely taxes for those countries will have to be raised to maintain their public projects, or to protect their economy.. A lot of the decline in the use of gasoline results from increase in electric vehicles, travel by bicycles, and more people walking.

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  3. The price of a barrel of oil incorrectly cited above as a gallon, has since gone down to below $45 per barrel. Price per gallon of gasoline have been reported in the U.S. under $2 . We purchased our last tankful at $2.30 per gallon for regular in Castro Valley, across the bay from San Francisco However there is a great difference of the price per gallon at the various gas stations. San Francisco gasoline prices are somewhat higher, and thus we seldom buy gasoline there. Property values are much higher and thus prices for everything are higher, including taxes.

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