small trade • Economics and Finance • Forbes Mexico

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The recent upward adjustment of the Petroleum Liquefied Gas distribution rate (LP) is the highest five years, which will complicate more the supply of families in the country, according to the National Alliance of Small Merchants (ANPEC).

He indicated that the rise from 2.31 pesos per liter to 3.51 from August 19 was to support distributors who allege increasingly narrow gain margins.

“However, in Acts it opens the door for the increase to end up reflecting in the pocket of millions of families that depend on this fuel to cook, bathe with hot water and transport,” he warned in a statement.

He explained that the adjustment led Baja California to be placed as the entity with the highest price of LP gas, above 23 per liter, and that in Mexico City it is around 20 pesos.

“This is an increase in national scope that de facto will make the distribution and supply of goods to the points of sale,” he said.

The president of the organization, Cuauhtémoc Rivera, said that the increase in LP gas and the shortage of Magna gasoline generates a double concern, as it forces to examine conditions of supply and price of LP gas for winter.

“If the United States, our main gas supplier, is affected by frost phenomena such as a polar vortex, will prioritize its internal consumption and can suspend exports, leaving us in Mexico in a complex, critical, critical, insufficient gas in the country, problem of generating electricity and much higher prices,” he anticipated.

Last week it was announced that LP gas distributors managed to establish a minimum margin of gain or distribution rate, which passed to 6.5 pesos per kilo and 3.51 pesos per liter of the hydrocarbon.

The new distribution rate are taken into account by the National Energy Commission in its formula to set the maximum prices to which hydrocarbon can be sold in the country.

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“The Government ensures that with the new rate seeks to balance the operation without directly affecting the consumer; however, the risk is that little by little households in front of more expensive prices in a context where LP gas is a basic input in daily life, at home, in transportation and in the supply of goods,” said anpec.

In its bulletin, the association stated that in August there was a slight increase of 0.12% in the average price of the basic food basket compared to the previous period, which meant a calculation of 1,966.36 pesos.

The five entities with the most increased basket were Oaxaca (4.47%), Nayarit (3.69%), Yucatan (3.47%), Colima (2.95%) and Campeche (2.94%).

And the products whose most prices increased were: table salt, orange, cookies, bathing soap, oats, apple, soluble coffee and egg.

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