Life is now more expensive due to the “gasolinazo”

By Karen López Monday, January 2, 2017 comments

alzas1

Prices increase on products and services in the first weeks of 2017

 

The impact generated by the turbulent news about the increase of up to 20 percent of the fuels does not end there, as the products and services will become more expensive in the course of 2017.

 

alzas1

 

Gasoline

 

The announcement was made by the Secretariat of Finance and Public Credit on December 27. The issue of liberalizing gasoline will be seen in a gradual and diverse way in the different states of the Republic.

 

Protesters from all states have already proclaimed themselves against this government decision; however, nothing has been done against this, which until now, raises a dangerous panorama for the purchasing power with which the average Mexican counts.

 

gas2

 

LP Gas

 

This will also have to be liberalized starting this year and now there won’t be a single official price. Each company will be able to establish the costs that seem adequate to them and the consumer will have the option to choose.

 

Transportation of goods

 

The National Confederation of Mexican Transports (Conatram) also raised its voice. In view of the rising gasoline prices, the drivers will have to increase the prices for the service of their freight, at least 20 percent.

 

“You automatically have to raise the cost of freight, or you won’t be able to make ends meet, and the problem is that the user is going to resist the increases and the problems begin,” said Elias Dip Ramé, president of Conatram.

 

alzas2

 

Basic basket of goods

 

The Confederation of the National Chambers of Commerce, Services and Tourism (Concanaco-Servytur), explained in a release that the rise in fuels will generate affectations in the production chains and with this, the costs of the basic basket will be heightened.

 

The National Front of Producer and Consumers of Milk, indicated that the increases in dairy products can be between eight and ten percent. Meanwhile, the National Council of Rice Producers of Mexico estimates that the costs of the product could rise between 25 and 30 percent.

 

Public transportation

 

Taxi drivers announced that in the coming weeks, they will ask the government of Miguel Angel Mancera to increase rates. “We are going to have to do so, in order to compensate a little for this extra expense that the fuel represents for us.”

 

Other services, such as Uber and Cabify, responded that there will be no immediate increase in the tariff, but that they will analyze it after the impact of increased fuel for their drivers.

 

alzas4

 

Passport

 

The Secretariat of Foreign Affairs announced the new costs. The passport valid for one year will cost 545 pesos (20 pesos more compared to 2016); The three-year one will now cost one thousand 130 pesos (35 more); The one of six years one thousand 555 pesos (50 pesos) and the one of 10 years two thousand and 390 pesos (75 pesos).

 

People with disabilities, those over 60 and agricultural workers will have a fifty percent discount on payment.

 

Cable TV

 

The various pay-TV operators will also be affected; Sky said that because of the effect of inflation and the variation of the dollar costs to provide the service, from January 3 the packages costs will be enhanced.

 

alzas3

 

Rent

 

Currently the price is located at zero point four percent of the value of the property, but for the next year could reach zero point seven percent, in homes located in downtown neighborhoods and with high surplus value, in Mexico City.