Protests throughout Mexico continue as a 14-20% rise in fuel prices has occurred due to Mexico’s deregulation of their oil/gas market on January 1, 2017. The backlash over the government’s policy change has caused a major disruption in fuel distribution in the states of Chihuahua, Durango, and Morelos, Mexico. Issues including blockades of fuel storage terminals, looting of gas stations, road closures, abandoned vehicles, and delayed border crossings have been reported.
The issue is affecting border crossings in both Arizona and Texas, although the problem is magnified in McAllen, Texas due to the increased distance from the current growing regions in Jalisco, Sinaloa, and Veracruz. Markon expects prices for several Mexican commodities to increase as growers address this critical logistical situation.
A national increase of fuel prices in Mexico has caused protests and blockades throughout the country
Delayed shipments crossing into Nogales, Arizona and McAllen, Texas will reduce supplies over the next one to two weeks
Price levels will rise as growers address higher fuel costs and distribution challenges
Markon will be monitoring the situation closely and continue to update as needed
Please contact your Markon customer service representative for more information.
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