Price of Gasoline Rises Tomorrow

by Murry Page

1 Nov 14  

mazmesseneger.com

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Tomorrow the price of gasoline in México will increase for the eleventh time this year. The Mexican Association of Entrepreneurs Gasolineros (Amegas) reported that beginning on Sunday the price of a liter of Magna will rise 9 centavos with Premium and diesel increasing 11 centavos per liter. With the new prices the cost of a liter of Magna stands at 13.22 pesos, Premium at 14.00 pesos, and diesel at 13.83 pesos.

Converting the price of gasoline in México to dollars per gallon, the price of Magna, Premium, and diesel will equal $3.85/gal., $4.08/gal., and $4.03/gal., respectively.

According to data provided by Amegas 55 percent of the fuel sold in México is Magna, 11 percent is Premium, and 34 percent is diesel.

So far this year the price of Magna has increased 9 percent, Premium has increased 10.3 percent and the price of diesel has risen by 10.7 percent.

According to the Federal Budget for 2014 the last automatic increase in the price of fuel will occur December 1. Beginning in 2015 the price of gasoline and diesel will increase only by the increase in inflation and then only once a year.

(from Milenio)

Price of Gasoline to be controlled by Inflation in 2015

 by Murry Page

22 May 14  

mazmessenger.com

 

Energy Secretary, Pedro Joaquin Coldwell, said that in 2015 the increase in the price of gasoline would be controlled by inflation, not the monthly increase set by the government, as has been the case for a number of years.

For 2014 the price of diesel will increase 9 centavos per month, while gasoline will increase 11 centavos a month throughout the year.

The Secretary said “As for next year, if the proposal by the Executive secondary legislation is approved, the adjustment to the price of gasoline will only in line with inflation, which will mean a price growth rate that will be more moderate.”

Pedro Joaquin Coldwell also said by January 1, 2020, México would be opening the gasoline market and people would have options for gasoline competitively priced, as well as different qualities of fuel.

(from Milenio)

Peña praises Banxico’s work

 

 Tuesday, 15 October 2013 01:10

BY MAURILIO SOTO
TheNews.com


President Enrique Peña Nieto said Monday that the Mexican Central Bank (Banxico) has been successful in controlling inflation, prices, bank commissions and interest rates over the 20 years since it was granted autonomous decision-making powers.

According to Peña Nieto, when the Mexican Constitution was modified in August 1993 to grant Banxico autonomy from the federal government, the primary goal was to stabilize the peso following 20 years of inflation and economic crises.

Banxico has been successful in this goal, he said, as inflation has averaged 9.9 percent over the past 20 years, compared to the 45 percent average inflation seen in the 20 years prior to 1993. Peña Nieto said that these convincing results have ensured that the Mexican financial system has become “one of the most robust, solvent and liquid in the world.”

Banxico Chairman Agustín Carstens said that in the years before the central bank was granted operational and decision-making independence, Mexicans often suffered from the effects of macroeconomic shocks. “They lived through intense and prolonged periods of high inflation, extensive poverty, cancelled investment projects and savings that were lost in a matter of months,” Carstens added.

The youngest generation in Mexico has never had to face these problems, Carstens said. “Today, more than 32 million Mexicans have never lived through annual inflation exceeding single digits, they don’t know the ravages of high inflation and instead benefit from the country’s macroeconomic stability,” he added. “Today thousands of Mexicans have access to mortgages with payment terms of up to 30 years. This was simply unthinkable in 1993.”

Peña Nieto said that the financial reform proposal he presented to Congress earlier this year would further expand access to credit and stimulate the economy. Thanks to the country’s healthy financial policies and the hard work of Banxico, he added, the country is ready for further growth.

“This would give the country a new, long-term stimulus to increase and democratize productivity, create the jobs that Mexicans demand and, above all, improve the quality of life for all the country’s population,” Peña Nieto said.

Must-know: Mexican indicators confirm a positive turnaround (Part 3)

marketrealist.com
By Sr Emerging Markets Analyst • Sep 27, 2013

Turnaround signals

Earlier this month, several macro indicators started giving faint signals of turnaround for Mexico (EWW). While quarterly GDP was down, PMI started pointing towards a reversal in the negative course.

Given that PMI is forward-looking, positive macroeconomic data this month have been key in confirming the positive trend.

Industrial production increasing

Industrial production was dragged by construction activity in July. But manufacturing has increased three months in a row. On annual terms, manufacturing dropped 0.1% in July. But month-over-month, it increased 0.4%—the third increase in a row.

The drag seems limited to the construction sector, which may continue until the government’s infrastructure plan starts kicking in during 2014. On the positive side, auto exports spiked in August. This is one of the largest sectors of Mexican manufacturing.

Inflation remains low

As we mentioned in a previous article, inflation has remained under control and come in lower than expected in August. Inflation will likely remain around 3.5% in the near term.

There may be some marginal upside pressure from the agricultural sector, which will continue until the end of the year. The biweekly indicator did inch higher earlier this week as well.