Mexico: 1,700 gas stations near North border close down

Around 1,700 Mexican petrol stations near the U.S. border closed down on Wednesday in protest against the conditions imposed by Enrique Peña Nieto's Government.

Fuel retailers on the border with the U.S. kept their stations closed for the whole of Wednesday after the Mexican government fixed “unfair” fuel prices, reported Diario de Yucatán.

Gas stations operators were told they could only sell fuel at a price of 12.80 to 15.90 pesos (0.62 to 0.76 dollars) a litre, leaving them a slim margin of 3 pesos a litre and forcing many out of business, according to Rigoberto Ramos, President of the Fuel Retailer Association for the Tamaulipeca Border.

State-owned Pemex supplies fuel to retailers at a price of 12.80 pesos and offers a subsidy to those who put it on the market at the same rate. However, many feel that is not enough for them to continue operating as they also have to face competition from U.S. retailers across the border.

The Fuel Retailer Association for the Tamaulipeca Border told reporters that 15 gas station had already shut down permanently due to the new conditions.

Tensions between government, retailers and consumers have continued since the ‘gasolinazo’ in early January when there was a 20% hike in state-set fuel prices.