Shock at Mexican Fuel Price Hike Turns to Pandemonium

Reaction to the 20 percent hike in fuel prices on New Year's Day has been swift, causing riots and looting resulting in four deaths and arrests of over 700 people, but President Enrique Peña Nieto continues to justify the need to end fuel subsidies.

2 minute read

January 9, 2017, 7:00 AM PST

By Irvin Dawid


In addition to the looting and fatalities, The Associated Press reports on blockades performed by truckers at ports, highways and terminals. CNN has photos showing the looting of a department store and stealing fuel at a gas station.

While the price hike has been justified by President Enrique Peña Nieto as a "responsible measure for the stability of the economy," according to a government blog, it has led to a great deal of civil unrest. Peña Nieto also emphasized that the price hike is not a result "of the Energy Reform" or increase in taxes, but of an increase in global prices.

I know that allowing gasoline to rise to its international price is a difficult change, but as president, my job is to precisely make difficult decisions now, in order to avoid worse consequences in the future," Pena Nieto said in a televised address. "Keeping gas prices artificially low would mean taking money away from the poorest Mexicans, and giving it to those who have the most."

As posted earlier, the hike is result of energy reform, specifically the deregulation of fuel prices to allow for prices to be determined, in part, by global oil prices. However, the energy reform that Peña Nieto was likely referring to is the 2013 proposal to allow foreign investment in the state-owned oil company, Pemex.

The government blog elaborated on why Peña Nieto needed to end the subsidy of fuel prices from an equity perspective:

He would have had to stop funding programs in the health sector, the education sector , which are priority and which are certainly a priority for the government against which would have meant devote those resources to maintain a fixed price of gasoline.

More photos appear in the AP article in the Daily Mail.
========================================
Related in Planetizen:
New Year's Shock Greets Motorists at Mexican Gas StationsJanuary 5, 2017: 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.

Saturday, January 7, 2017 in The Associated Press

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight