The price of Magna has gone up another 3 centavos per liter, after a 5 centavo increase just a week ago. Not earth-shaking but an increase nonetheless. From Gasolina magna sube otros tres centavos - Yahoo! México Noticias MEXICO, D.F., diciembre 27 (EL UNIVERSAL).- Por segunda semana consecutiva el gobierno federal decidió aumentar el precio de la gasolina Magna. A partir de este sábado 26, el combustible de mayor consumo en el país sufrió un incremento de 3 centavos por litro y ya se comercializa en 7.80 pesos, cuando apenas hace siete días había registrado un aumento de 5 centavos, según dio a conocer Luz María Jiménez, presidenta de Gasolineros Unidos de Puebla y Tlaxcala.
So, if I have it right: 7.8 pesos per litre is approx £0.37 per litre, ave price in the UK is £1.09, almost 3 times more. I'll take it How does the price here match up with a litre in the US?
Prices vary by region and state within the US. Using 13 pesos to the dollar, a liter in Southern New Hampshire ( about 80km north of Boston) is approximately 8.9 pesos per liter.
Magna was at 7.41 for quite a while after the last hike. They say it has gone up 3 times in the last 10 days or so. Taxes also recently went up: IVA by 1%, Income tax by 2% (that most don't pay anyway--Mexico being one of the countries with the lowest percentage of tax collection) and lodging tax up 1%. I personally feel that both taxes and the price of gas have to go up if the country is to grow and join the rest of the world. Everyone wants more service without paying taxes and depending on federally distributed Pemex money to pay for schools, roads and other services. Well, Pemex is Number 1, the last time I checked, as the most indebted company in the world! They can't just keep sucking off of that teat since it is going dry. Between corruption and inefficiency, there is no money to develop new oil fields. And while people like to say "I pay your salary" to the government, police and other authorities, the real truth is that most people pay little or no taxes and receive all kinds of services. I own 3 lots and a home and pay about $200 usd per year in property tax. That is all that I pay for Municipal services. Now really! How much can I expect to get from them? Not a popular stance I am sure--being in favor of raising taxes and gas prices but there really is no free lunch. And of course, I can spout the old "why should I pay for corruption and inefficiency in government?" But that's for another post and as for me not paying because I have no confidence in the government, that is either a) an excuse, b) the truth, c) no real help to the economic situation of the country or d) all of the above.
For an amusing half hour or so of reading enter the words Pemex and corruption into a Google search or just click here - Google Search to see 390,000 search results. Of the 30 or so I skimmed, none were very encouraging.
I agree--it is most indebted not only because of the fact that they have been skimming money for half a century to pay for roads and schools and other social programs but because of unions (apropos word "sindicato" in Spanish!) and high levels of skimming by Pemex and everyone else in government along the pipeline. Money is taken from Pemex and sent to the states and how much actually gets to roads and schools and other programs is much less than the original amount I am sure.
I have no problems with higher taxes if I know that they are being used well... in Mexico I tend to assume that its going straight into the pockets of the people in charge. Also FYI Jim, you do pay far more than $200 a year.. as everything you buy has the IVA on it, which goes to pay local and national expenses. Not sure of the percentage, but some of it is supposed to go to the area where the sales are made. BTW, what is the current IVA? Is it still %10?, as I've heard all sort of conflicting rumors, and there is always the NewYears rumors of hikes....
