Enrique Peña Nieto explains rise in gas price

By Elliot Bullman

A continued subsidization of gasoline would have required a cut in resources.

President Enrique Peña Nieto the increase in the price of fuels explaining that it is not due to the Energy Reform or an increase in fuel prices, but due to external economic factors.

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"This is an increase coming from the external economy. The government will not receive a penny more in taxes from this increase."

In the Adolfo López Mateos room in Los Pinos, Peña Nieto said that “the country must project confidence to the world, or else the world will begin to distrust us.

Peña Nieto went on to say that maintaining an artificial price of gasoline in 2017 would have meant an additional expense of more than $200,000 million pesos, in addition to provoking the increase of taxes or an increase of the country's debt, "putting at risk the stability of the nation´s economy".

According to the president, "maintaining artificial gasoline prices would mean taking away from the poorest Mexicans to give to those who have the most."

Peña Nieto explained that a continued subsidization of gasoline would have required a cut in resources that should be directed towards programs of higher priority including:

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Four months of all Social Security services: from consultations with the family doctor, to surgeries, crèches and emergency services.

Interrupting two full years of support provided by the PROSPERA Program to almost 7 million families.

Suspension for three years of the Seguro Popular, which cares for the health of more than 50 million Mexicans.

Peña Nieto explained that the decision was made for the preservation of economic stability and that the decision was taken owing to the global rise in gasoline prices.

In all the countries around the world, gasoline has gone up in price, and it is not because the government wants it. I would prefer that it did not happen, but that is what has happened, and the government’s decision was based on these increases happening around the world,” he said.

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