Gas price hikes spur protests across Mexico

By Nancy Caouette

MEXICO CITY (AA) – Thousands of demonstrators on Tuesday blocked highways, roads, gasoline stations and government offices for a third straight day in 29 of 32 states to protest a hike in gasoline prices.

Truckers, transportation workers and activists have rejected the Jan. 1 raise that represents an increase of 14 percent for regular gasoline and a 20 percent jump in the premium price.

Protesters in Mexico City forced the closure of the Finance Ministry and demanded the government reverse its decision. Demonstrators also blocked entrances to at least 14 gas stations.

At least 3,000 demonstrators took to the streets in the country’s second-largest city of Guadalajara.

The government contends the price hikes will end subsidies that benefit the wealthiest Mexicans.

Assistant finance secretary Miguel Messmacher told reporters Monday the hikes are also a result of the falling peso, and underlined that Mexico imports much of its gasoline although it exports crude oil.

“These things always create bad feelings,” he said. “That is very clear, and very understandable. It is very clear to us that this is obviously an unpopular measure,” he said, adding that the government would not reverse its decision.

President Enrique Pena Nieto’s administration also said the price increase would help attract new private investors in the newly opened fuel market.

The government approved energy sector reform in 2014 that allows private investment in oil extraction and transformation and sales that ended a more than seven-decade state monopoly in the sector.

Meanwhile, the Ford Motor Company announced Tuesday it would cancel the construction of a $ 1.6 billion dollar plant in Mexico.

The Mexican currency nose dived immediately following the news, falling to as low as 21.050 against the dollar -- its weakest level since November.

The peso hit a record low of 21.395 after Donald Trump won the U.S. presidential elections Nov. 8.