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Policy Boosts Fuel Cost in Mexico: Transportation Slowed by Strikes

Policy Boosts Fuel Cost in Mexico: Transportation Slowed by Strikes



MEXICO - Reports have come in that a policy change in Mexico that de-regulated fuel prices and led to a sudden increase in costs has triggered truck strike movements in the country.

Anonymous sources shared with AndNowUKnow that approximately 500,000 commercial and public vehicle drivers went on a 24-hour strike Monday, January 2, with the possibility of official protests and blockades as soon as this weekend.

“The gasoline crisis likely won’t change, so it's just a matter of how long the people are going to be pissed off about it,” one source, who asked to remain anonymous, shared with me, adding that while they don’t know of any official strikes, there have been several protests which have slowed trucks in several areas.

Thus far it is reported that everyone has been affected in a mild way, but it is likely there will be a cumulative effect.

“Because the roadblocks are away from the border (for now), it is harder to get a feel for their full impact,” one source continued. “It will definitely affect the produce market in that freight costs will likely go up an equivalent amount–currently consensus figures are at 20%. There is the possibility of official protests and blockades for the weekend, but since this is a popular movement there is no mouthpiece or leader to talk to to verify.”

A few roadblocks have been set up, but are letting vehicles through slowly.

Another source shared that, while the majority of produce commodities imported into the U.S. from Mexico are in ample supply, the following could be affected by the movement:

  • Asparagus
  • Avocados
  • Bell Peppers
  • Broccoli
  • Cauliflower
  • Cilantro
  • Cucumbers
  • Green Onions
  • Squash
  • Strawberries
  • Tomatoes

The current outlook is that few hold-ups are reported, but to be on the lookout for more delays at the border, as well as crossing times and impacts on supply levels, should the strike continue.