As gas price in Mexico climbs, so does unrest
MEXICO CITY — Amid nationwi d e marc h e s , h i g hway blockades and looting stemming from widespread outrage over an increase in gas prices, President Enrique Peña Nieto of Mexico went on national television to appeal for understanding.
Wit h i n t e r n a t i o n a l o i l prices ri sing and Mexico d e p e n d e n t o n g a s o l i n e imports, he argued in the speech Thursday that the government had no alternative but to raise prices. “Here I ask you,” he said, gesturing at the camera, “What would you have done?”
Mexico is reeling from myriad problems including rampant corruption, resurgent homicide rates, a thriving drug trafficking industry, a sluggish economy and a plummeting peso.
The few voices of support for Peña Nieto — in political circles and among news commentators — have been drowned out by his detractors, and no more so than in the past week, when discontent over the gas price increase boiled over into protests, looting and deadly clashes with security forces.
The unrest comes as Mexico braces for the administration of U.S. President-elect Donald Trump, who has threatened to introduce far more restrictive immigration and trade policies.
T h e Mex i c a n p e s o h i t record lows last week after he criticized General Motors on Twitter for exporting cars made in Mexico and Ford Motors announced that it would cancel plans for a $1.6 billion plant in the country. Mexico’s Central Bank was forced to intervene to bolster the peso, but the currency took another hit after Trump threatened Toyota on Thursday with a “big border tax” if it went ahead with a new factory in Mexico.
Mexico’s Economy Ministry issued a brief statement in response saying the government “rejects any attempt to influence investment decisions by companies based on fear or threats.”
But in general the Peña Nieto administration seems to be struggling to figure out how to respond to Trump. Mexicans have been clamoring for a full-throated, chestout defense of their country and sovereignty, but many say they have yet to hear it.
The price increases took effect on New Year’s Day, when Peña Ni e to was i n the middle of a golfing trip. And as bloody unrest swept across the country, the president kept silent, finally making a public statement on the issue Wednesday.
Even then, his comments were buried in a news conference focused on Cabinet changes that included the return of Luis Videgaray, a close confidant who resigned under pressure as finance minister in September after championing an unpopular visit by Trump.