Mexico began deregulation of gasoline prices to the dismay of motorists, as gas prices jumped about 20 percent on New Year's Day. People are so upset that pundits suggest the decision may imperil President Enrique Peña Nieto's re-election next year.
"Mexican motorists awoke to a shock as gasoline prices at the pump shot up by more than 20 percent in some corners of the country on the first day of the year, sparking panic buying, street protests and even a call by one prominent lawmaker for a 'peaceful revolution'," reports David Agren for The Washington Post.
Regular gas is scheduled to sell for 15.99 pesos per liter in Mexico City (about $2.85 per gallon), though prices will vary across the country.
That's over 20 percent higher that U.S. gas prices which averaged $2.353 on Jan.4, according to AAA. However, gasoline prices in Mexico are set by government for historic reasons, explains Agren.
Mexicans have long been used to low prices at the pump. Mexico expropriated the country's oil industry in 1938 and kicked out foreign oil companies, a move celebrated by Mexicans as a seminal act of sovereignty. Most Mexicans associate its nationalized oil industry with cheap gas.
However, Mexico now imports about half the gasoline it consumes. In a separate article, Maria Verza of the Associated Press reports on what Jorge Pinon, an energy expert at the University of Texas, Austin, described as "a total collapse of the refining system of Pemex."
The deregulation was prompted by budgetary reasons resulting from low oil prices. When oil prices were higher, the government would subsidize gas prices, which Mexicans had grown accustomed, notwithstanding some criticism.
"Some even pointed to the unfairness of the subsidies — which totaled approximately $20 billion in 2008 — saying the government spends more on cheap fuel for rich motorists (who collected much of the money) than on the budget for the National Autonomous University of Mexico," notes Agren.
This is not the first major energy change instituted by President Enrique Peña Nieto who proposed energy reforms in 2013 that allowed foreign investment in its state-owned oil company, Pemex for the first time since the expropriation in 1938. More recently, Planetizen correspondent Elana Eden reported on a carbon pricing demonstration project that was scheduled to begin in November 2016 "before launching a national carbon market in 2018."
FULL STORY: Mexicans are outraged over a big hike in gas prices on Jan. 1
Depopulation Patterns Get Weird
A recent ranking of “declining” cities heavily features some of the most expensive cities in the country — including New York City and a half-dozen in the San Francisco Bay Area.
California Exodus: Population Drops Below 39 Million
Never mind the 40 million that demographers predicted the Golden State would reach by 2018. The state's population dipped below 39 million to 38.965 million last July, according to Census data released in March, the lowest since 2015.
Chicago to Turn High-Rise Offices into Housing
Four commercial buildings in the Chicago Loop have been approved for redevelopment into housing in a bid to revitalize the city’s downtown post-pandemic.
New Park Opens in the Santa Clarita Valley
The City of Santa Clarita just celebrated the grand opening of its 38th park, the 10.5-acre Skyline Ranch Park.
U.S. Supreme Court: California's Impact Fees May Violate Takings Clause
A California property owner took El Dorado County to state court after paying a traffic impact fee he felt was exorbitant. He lost in trial court, appellate court, and the California Supreme Court denied review. Then the U.S. Supreme Court acted.
How Urban Form Impacts Housing Affordability
The way we design cities affects housing costs differently than you might think.
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
City of Universal City TX
ULI Northwest Arkansas
Town of Zionsville
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.