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situation report

Jan 11, 2019 | 19:21 GMT

1 min read

Mexico: Business Representatives, Cabinet Members Urge President to Reopen Pipelines

What Happened: Members of Mexico's business community and economic advisors within the president's Cabinet have asked President Andres Manuel Lopez Obrador to reopen key pipelines that have been shut down in the country's ongoing operations against fuel theft, La Politica Online reported Jan. 10.

Why It Matters: Lopez Obrador is facing increasing pressure from within his administration to provide temporary relief for Mexico's energy companies and consumers. However, Lopez Obrador will likely continue security audits at refineries and fuel terminals despite public discontent, which will further aggravate fuel shortages.

Background: Shortages of gasoline and diesel continue to affect hundreds of fuel stations in the Mexican states of Jalisco, Hidalgo, Michoacan, State of Mexico, Queretaro and Guanajuato. The shortages began in early January after the federal government ordered military forces to implement tighter security measures at a state-owned refinery in Salamanca to curb fuel theft.

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