• 287 days Will The ECB Continue To Hike Rates?
  • 287 days Forbes: Aramco Remains Largest Company In The Middle East
  • 289 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 689 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 699 days Big Tech Disappoints Investors on Earnings Calls
  • 700 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 702 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 706 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 707 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 709 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

Mexico Hikes Gas 20 Percent: Mass Protests Ensue, One Dead, 600 Arrested, in Widespread Looting

Last weekend the Mexican government hiked gasoline prices 20%. Today, all hell broke loose.

In response to gas hikes, looting began: 1 Dead, 600 Arrested in Mexico Gas Protests.

Anger over gasoline prices hikes fueled more protests and looting Thursday, and Mexican officials said the unrest had resulted in the death of a policeman, the ransacking of 300 stores and arrests of over 600 people.

The country's business chambers said the combination of highway, port and terminal blockades and looting this week forced many stores and businesses to close and threatened supplies of basic goods and fuel.

Mexicans were enraged by the 20 percent fuel price hike announced over the weekend as part of a government deregulation of the energy sector. Protesters began blocking highways and gas stations and some people have broken into stores to carry off merchandise.

Authorities said one policeman was run over and killed and another was seriously injured when they tried to stop robberies at a gas station in Mexico City. Police in the capital said they had arrested 76 people for looting about 29 stores.

The change boosted the average price for a liter of premium gasoline to 17.79 pesos (about 90 cents). That makes 4 liters, or about a gallon, equal to nearly as much as Mexico's just raised minimum wage for a day's work -- 80 pesos (about $4).

With blockades affecting everything from gas distribution terminals, seaports and highways to shopping centers and gas stations, the Communications and Transport Department announced it would cancel permits for any truckers who block roads.

In the Gulf coast city of Veracruz, 50 establishments including convenience stores, supermarkets and big-box outlets suffered looting, according to a preliminary count by the local chamber of commerce.

Store guards were overrun by crowds who carried off clothing, food, washing machines, televisions, DVD players and refrigerators.

President Enrique Pena Nieto said Wednesday that he would try to help groups hit hard by the increases.


Looting, Protest Images

Looting a toy store in Vera Cruz, Mexico

Stealing gasoline in Allende, Mexico

Military police secure a store in Vera Cruz, Mexico

The above images courtesy of CNN: Mexico: 20% gas price hike fuels looting, protests.


Presidential Statement

President Pena Nieto: "I understand the anger and irritation felt by the general public over the price increases. But if this decision had not been taken, the effects and consequences would have been far more painful."

Mish Translation: "Mexico is broke. Our beloved peso collapsed along with oil revenue. As a consequence of declining revenues and increased spending, inflation is rampant. We had to hike prices and we may have to increase interest rates even more. My statement that we will help those hardest hit is of course a lie."

Earlier today I reported Mexico Central Bank Intervenes to Prop Up Peso.


Mexico Needs New Plan

Mexico might wish to try honest money and a balanced budget.

Here is a proposal by my friend Hugo Salinas Price that makes sense: Hugo Salinas Price Asks Mexico for Silver Coin to Calm the National Tantrum.

Mexico did not heed the advice. And we have have seen the results.

Mexican oil won't last forever. It's time for a new plan.

 

Back to homepage

Leave a comment

Leave a comment