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AMLO says despite inflation the prices of electricity, gas, oil will not increase

Mexico City, Mexico — President López Obrador says despite inflation, the prices of electricity, gas and oil will not increase. He says Mexico has the advantage of being able to control these prices.

“We will continue to maintain the price of electricity without increases in real terms,” he said adding that in the case of LP gas, companies were “abusing the price of gas”. With AMLO’s new Gas Bienstar project, “we take care of maximizing prices,” he said.

President Andrés Manuel López Obrador said that Mexico’s high inflation is transitory and global phenomenon however, he anticipated that it is likely that the price cap policy for domestic LP gas will be extended during 2022, considering the measure has worked to contain the inflationary rebound.

“I think that the maximum gas prices has worked, so it is very likely that this policy will continue because it is giving results.”

On July 29, the Energy Regulatory Commission (CRE) approved a regulation of maximum fuel prices used by seven out of every 10 Mexican households following an order from the Ministry of Energy. The measure has been in force since August 1, 2021 and would end on January 31, 2022.

López Obrador said that along with the policy of maximum prices, “it is important to report” that the phenomenon of inflation is worldwide and exemplified that inflation in the United States is at the level of Mexico at around seven percent, while in Brazil is 11 percent.

“As the productive activities were slowed during the pandemic and when the economic recovery began again, there were no raw materials and the prices of food, gas, steel, the price of maritime transport began to rise, then all that produced inflation (… ) So, all this affected what is happening. I hope it is transitory,” he said.