The dangerous obsession with the energy sector

Obsessing over control of the energy markets is as absurd as wanting to control the exchange rate in an open market. And both are two stubbornness of the current administration.

Fortunately, the President no longer speaks of the exchange rate, because he presumed it when it was at levels below 20 pesos per dollar as an achievement of his government. Now, a few weeks later, that the peso has depreciated to levels close to 21, no one wants to see López Obrador ordering some exchange control mechanism to keep his peso strong.

It is the same that happens with the energetic ones, but here there is a very dangerous fixation.

Structurally, the greatest danger, for now, is in the energy counter-reform that poses a setback for the electricity, oil and mining sectors that would condemn Mexico to isolate itself from a world that demands efficiency and increasingly clean energy.

As the future of this presidential initiative is defined in Congress, there is an ongoing energy crisis in the liquefied petroleum gas (LP) market.

All over the world there is an economic contingency due to the low levels of fuel production and its high costs. High energy prices affect all economies.

China has bottlenecks in its industry, Europe faces high electricity costs, the United States struggles with inflation and Mexico, on top of all this, complicates it with impertinent political decisions.

The price control of Q4 in the LP gas market, which has punished the operating and profit margins of the fuel distributors, has not only generated the mobilizations and blockades of the last days but also the closure, according to the Association Mexicana de Distributors of Liquefied Petroleum Gas, of 10% of the distribution routes throughout the country.

Price controls have not prevented gas prices from continuing to rise, but have imposed burdens on gas carriers to maintain their profitable activity.

The most expensive product is the one that is not available in the market and if we talk about a fuel as basic as domestic gas, we could be on the verge of a social crisis if the number of delivery men who choose not to work increases due to the losses in their exercise.

Gas is not going to drop in price anytime soon, winter is coming.

Mexico produces just 40% of the gas consumed in the domestic market and its propaganda Gas Bienestar, in addition to its prices having risen sharply, only distributes a few cylinders to the Iztapalapa mayor’s office in Mexico City.

That fuels are expensive today is neither the fault of the neoliberals nor the 4Q, it is a global reality. It is not worth buying that lawsuit and committing fiscal resources or the productive chains to be politically good.

Limiting the market with price caps ends up hurting consumers more in the medium and long term and trying to get Mexico to return to the failed model of energy monopolies at this time in national life looks more like a suicide attempt by the Mexican economy.

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Host of Televisa Newscasts

The great Depression

Bachelor of Communication Sciences from the National Autonomous University of Mexico, with a specialty in finance from the Autonomous Technological Institute of Mexico and a master in Journalism from the Anáhuac University.

His professional career has been dedicated to different media. He is currently a columnist for the newspaper El Economista and a host of newscasts on Televisa. He is the owner of the 2:00 pm news space on Foro TV.

He is a specialist in economic-financial matters with more than 25 years of experience as a commentator and host on radio and television. He has been part of companies such as Radio Programs de México, where he participated in the VIP business radio. He was also part of the management and talent team of Radio Fórmula.

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