Mexican Drug Cartels Plan on Blowing Up Gas Stations After Mexico Reduces Subsidies for Gasoline


h/t fadesto­gold

The price increase comes as part of a planned liber­al­iza­tion of Mexico’s energy market, which involves the move from subsi­dies that kept gas prices low to a market-based pricing scheme that will adjust prices at the pump based on supply and demand. And while Mexico’s unpop­u­lar presi­dent Enrique Pena Nieto had promised that fuel prices will fall thanks to his 2014 energy reforms, which disman­tled the seven-decade-old nation­al owner­ship of petro­le­um resources by state-owned firm Pemex, the initial move in prices has been higher, and decid­ed­ly so, by rough­ly 20 percent for gasoline and slight­ly less for diesel.

The price ceiling will then be adjust­ed daily start­ing Feb. 18, before letting supply and demand deter­mine them in March, although it is the immedi­ate shock that is of concern to the peace and stabil­i­ty in Mexico.

Case in point, around 100 protes­tors blocked a service station in Acapul­co on Friday, while on Satur­day an assem­bly of popular organi­za­tions in Chihuahua state’s capital pledged to block all commer­cial trans­porta­tion from enter­ing or exiting the city as a means toward paralyz­ing the econo­my and pressur­ing the feder­al govern­ment to reverse the hikes. The assem­bly of people’s organi­za­tions also announced their inten­tion to block major highways and railways in respon­se to what they see as a neolib­er­al looting of Mexico and handover of its resources to private capital, accord­ing to a state­ment.

On Sunday, the day the price hikes went into effect, Excel­sior report­ed that angry citizens protest­ed in sever­al spots of the capital, Mexico City, block­ing roads, demand­ing a return to lower gas prices.

But before readers blow this off as just another protest by an angry population which fails to grasp the "global deflationary collapse" while focusing on "fringe, outlier events" - at least in the words of central bankers - things suddenly got serious when none other than the country's powerful Jalisco New Generation cartel entered the fray, threatening to burn gas stations in response to the price hikes, according to Jalisco authorities cited by TeleSur.

“They are specu­lat­ing in order to obtain million dollar profits from the major­i­ty of the people who don’t make even a minimum wage, we have already realized that the (short­age) of fuel is because dealers don’t want to sell fuel unless they can do so at a profit, all of our people are now ready to start the mission,” the Mexican drug cartel stated in a WhatsApp message circu­lat­ing in Jalis­co.
Relat­ed: Oil Ends 2016 On A Bullish Note

“The CJNG, in support of the working class, commits itself to making burn all the gasoline stations that to Decem­ber 30 of the current year, at 10:00 p.m.” — before the price increas­es go into effect — “have not normal­ized the sale of fuel at the fair price,” the message said, accord­ing to the Mexican news outlet Aristegui Notici­as.

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