Mexico keeps gasoline prices unchanged amid public backlash
MEXICO CITY (Reuters) -- Mexico's Finance Ministry on Friday said it would keep maximum gasoline prices unchanged between Feb. 4-17 compared with prices in January, postponing an expected fuel price hike amid a violent backlash over its gasoline liberalization.
The move follows weeks of speculation after the government raised prices in December by more than 20% as part of a program to end years of government-set prices at the pump.
"The recent evolution of the exchange rate and international gasoline prices have created the conditions to keep maximum prices unchanged during this period," the Finance Ministry said in its statement.
The ministry said the popular Magna gasoline brand would remain at 15.99 pesos ($0.7854) per liter, while the Premium brand would not budge from 17.79 pesos per liter. Diesel will cost 17.05 pesos per liter.
After Feb. 17, the government will determine maximum fuel prices on a daily basis.
The fuel price increase in December resulted in widespread looting and severely hurt President Enrique Pena Nieto's government, which already was unpopular and struggling to grapple over trade, immigration and security issues with US President Donald Trump.
Trump's election took the peso to record lows, which along with the fuel price increase, helped spur the fastest pace in annual inflation in more than four years in early January. However, the peso has strengthened in recent weeks.
Reporting by Gabriel Stargardter, Veronica Gomez, Roberto Aguilar, Miguel Angel Gutierrez; Editing by Bill Trott
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