What’s Going on in Mexico (is it about gasoline?)
So you may have heard that a lot of people here in Mexico are hoppin’ mad.
The immediate issue is that gas prices have gone up – but that’s only part of it.
Basically, the gas prices have been a great distraction from the previous scape goat – whose initials are DT. But the problems started long before November. Of course, if we want to really talk we’ll have to talk about decades of issues – but this is a blog post, not a book.
So let’s just say this. There has been a lot of concern about the Mexican economy, especially since toward the end of 2014, when the peso began to really fall against the US dollar. After being around 12 or 13 pesos to the dollar for a few years, it quickly dropped to 14, and then 15 – 16 — over 18 in the middle of 2016 — and recently over 20. The (un)popularity of Mr. Trump hasn’t helped – many Mexicans being concerned about what his election will mean for their jobs and their families.
Now, at the beginning of 2017, there was a planned step to continue with the deregulation of the petrol industry in Mexico.
The average traveller in Mexico will find that the gas prices are the same everywhere, because everywhere there is a gas station owned by Pemex (one of the world’s largest companies). Those prices change every month at the most – sometimes every few months. The highest price in 2016 was about CA$1.02 per litre (not too bad a price compared to Canada right now). And it didn’t change all that much.
But with the deregulation, the idea is that gas prices will start changing more naturally, based on international prices. That was to start on January 1st, with daily changes starting later in the year.
So that’s what happened – and gas prices jumped almost 15% in 24 hours, bringing prices up to around CA$1.16. That could add maybe CA$10 to a fill-up. Now, that’s a pretty big deal when, after months and months, if not years and years, everyone starts paying 15% more for gasoline all of a sudden. Truckers, travellers, commuters, couriers, bus drivers, taxi drivers – everyone driving is paying more, every day. And hence so are the people who depend on these drivers (pretty much everyone!). And the prices may rise again.
To help you picture this from another perspective – if you make minimum wage (which was just raised) here in Mexico, 5 litres is about a day’s wages now.
And, of course, the perennial question comes up – if the people of Mexico are supposed to own the resources of Mexico (Pemex is state owned) – where’s the benefit? (A question that goes back a century to the revolution and the changes in the years afterward.) Now we pay more for gas – and since the end of the New Year’s holiday the peso has fallen still farther (now about 21.4 against the US dollar).
Part of the issue is that international prices rose recently, making the increase higher than it otherwise would have been. But – well, again, these are complex issues going back decades if not longer.
So that brings us to this week. People are protesting – some carrying signs, other refusing to buy gas over several days. Some blocking roads.
And, sadly, in some areas the criminal element has taken the opportunity to go beyond peaceful protests – and has become involved in economy-boosting activities such as looting and vandalism. And stealing gas.
These activities are the exception, not the norm, although you can bet the media will find the scariest pictures they can. Nevertheless, people are truly upset, and very concerned about this country.
All that being said, we’re thankful it has been relatively peaceful around here. Road closures have been temporary. But of course people we know do have to travel – some returning home after the holidays – some doing ministry – and the protests are adding to the uncertainty and difficulty of regular travel. (And – yes, we’re hoping to travel too, at the end of next week…)
Last night there was a message from a Mexican pastor friend, who told us about a call he’d received from a man who wanted to get together for prayer. The pastor had the opportunity to share the gospel with him. “Despite the blockades, the gasoline and the whole tense atmosphere, he was ready to give his life to Christ – welcome to the family of God! There is a party in Heaven today. Fateful day? No, glorious day!!! In spite of everything!”
God will keep showing His grace – He might even use days of tension and uncertainty for His own glory!
