Petrol price rise triggers looting in Mexico

 

 

MEXICO CITY: -- Anger at the rising cost of living in Mexico has sparked mass looting.

 

People have taken the law into their own hands – even trying on shoes for size in stores before helping themselves – in protest at a hike in petrol prices of up to 20 percent.

 

Some 23 stores were ransacked and 27 blockades put up in Mexico City, Mayor Miguel Angel Mancera said, days after the government raised petrol prices by 14 to 20 percent, outraging Mexicans already battling rising inflation and a weak currency.

 

Authorities say a policeman was killed as he tried to stop a robbery at a petrol station. Nationwide, hundreds of arrests were made.

 

with Reuters

 

-- © Copyright Euronews 2017-01-06

Isn't the oil price at a record low? Don't really get it.

8 minutes ago, wump said:

Isn't the oil price at a record low? Don't really get it.

The price rise is nothing to do with the cost of oil. It is a Government tax.

But sure the final petrol price was even higher (including tax) a few years ago (when oil was at $150) than it is now when oil sits at $54?

 

A lot of governments including Thailand try to even out the fluctuations by increasing the tax when the oil price is low. This actually makes a lot of sense. Maybe these guys just needed a reason to riot?

 

Edit: Just as I suspected. What a bunch of d1ckheads.

Edited January 6, 20179 yr by wump

2 hours ago, wump said:

But sure the final petrol price was even higher (including tax) a few years ago (when oil was at $150) than it is now when oil sits at $54?

 

A lot of governments including Thailand try to even out the fluctuations by increasing the tax when the oil price is low. This actually makes a lot of sense. Maybe these guys just needed a reason to riot?

 

Edit: Just as I suspected. What a bunch of d1ckheads.

I guess the problem is When the price of oil goes back up this tax will still be on there.

Supplies have been cutback to force the price up which it has

31 minutes ago, Grubster said:

I guess the problem is When the price of oil goes back up this tax will still be on there.

 

Technically it shouldn't, because excess tax revenue from periods of low oil prices/high taxes can be used to cut the tax during a high oil price period. Worked pretty well in Thailand with diesel, I think at some point there even was some sort of subsidy and not just a tax cut, but I might be wrong there.

What are they going to do when Trump makes them pay for the wall?

Wow and expats are leaving thailand to live there!

On 6/1/2560 at 4:35 PM, wump said:

Isn't the oil price at a record low? Don't really get it.

Yes, a bit confusing, but there are lots of other reasons to effect these prices other than the Oil Price. 

 

Increasing Government Tax of fuel is one way. Dropping any subsidizing on fuel is another. Oil is also exchanged in US Dollars, so when you have a strong US Dollar, like we do now, and a week currency, like Mexico has now, you can experience a huge price increase in fuel prices even when on the Market it has been stable.