Residents of Mexico City have begun limiting the use of their private vehicles due to rising premium gasoline prices, according to a report by eluniversal.com.mx.
The fuel hike, primarily driven by the ongoing conflict between Iran and the United:: States, has directly impacted consumer budgets across the capital.
Ignacio, a taxi driver with 29 years of experience, says the current economic situation has reached a breaking point. “I can barely afford to buy bread anymore,” the driver remarked, referring to the combined impact of rising fuel costs and the rising price of basic groceries.
To cut costs, Ignacio has opted to switch from premium to regular gasoline, even though doing so goes against his vehicle manufacturer's recommendations.
The price of 'red' (premium) gasoline has reached 29 pesos per liter at various stations throughout Mexico City. This represents an increase of between two and three pesos compared to prices recorded before the Middle East conflict escalated.
In contrast, regular gasoline prices have remained at the cap agreed upon between the President and business leaders, staying at 23.99 pesos or less.
Government measures to combat the hike
Rafael, a lawyer, noted that while he doesn't find the increase exorbitant, he can certainly feel the pressure on his personal finances. He has called on the government to intervene to stabilize prices.
“We are supposedly an oil-producing country, yet we are still buying from other nations to keep our fuel supplies,” the professional questioned during an interview.
To curb this trend, the Mexican government has announced an increase in fuel tax incentives. According to information published by eluniversal.com.mx, these adjustments are set to take effect during the week of May 2–8.
Support for premium gasoline will be raised to 26.53%, which translates to a subsidy of 1.50 pesos per liter in an attempt to mitigate the impact on consumers.
