Thousands of jobs at risk after AMLO government fixes LP gas prices; Gas supplier go on strike

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The gas union triggers strikes due to the CRE price cap

The union invites them not to go out to work in the Valley of Mexico, the government measure affects their assets and puts thousands of jobs at risk, they say.

Derived from the cap on LP gas prices imposed by the federal government, the gas union was organized and is calling for work stoppages in Mexico City and the State of Mexico since they have losses that are affecting operators and generating unemployment.

Through a statement, the so-called National Gas Association that was formed from the measure of the Energy Regulatory Commission (CRE) to put maximum limits on LP gas, indicated that after a meeting between various groups of these two entities, this body was consolidated. that invites you to “not go out to work”

The union asked to establish a dialogue with the competent authorities and find the best solution so that it does not affect its assets, since they allege that the ceiling price for the Valley of Mexico is insufficient to cover operating expenses, and that there are at least 16 thousand jobs affected, mainly delivery men.

But it is not only in the Valley of Mexico that gas carriers are expected to stop activities, it is expected that more entities will join this call, such is the case of Hidalgo, Puebla, Tlaxcala and Veracruz.

The head of the Federal Consumer Attorney’s Office (Profeco), Ricardo Sheffield, said that he will be vigilant that the prices set by the CRE that came into effect on August 1 and that will be published every Saturday are met.

Inegi estimates that 79% of Mexican homes use LP gas as the main fuel for daily life. The owners of businesses that depend on this gas have filled social networks with complaints about the lack of supply. “I hope this is solved because if not tomorrow without gas I will no longer be able to work,” wrote Israel Antillano on Twitter. For its part, the gas operators union defends the strike due to the lack of attention from the authorities to “take care of their assets”, since the price of LP gas has dropped considerably this week in different regions of the Republic.

Workers in Hidalgo and Edomex start and will join gas carriers from Tlaxcala, Veracruz and Puebla;

Strike and Gas shortages are expected to spread across Mexico

 gas carriers from Mexico City and the State of Mexico jointly began a strike, which according to preliminary estimates, would be 8 thousand LP Gas pipes, which will stop providing service.

“The suspension of activities (is) because there are no price conditions that allow us to have an operating margin,” denounced José Adrián Rodríguez, president of the Union de Gaseros del Valle de México.

Workers from Hidalgo joined the strike and it is expected that gas carriers from Tlaxcala, Veracruz and Puebla will join since they cannot sell their product below their usual cost.

He added that the price of 11.52 pesos per liter for CDMX barely covers the operating price of the distribution plants and gas trasport, and that they, as commission agents and not employees of the same, leave hundreds of workers without a profit margin. .

“If Pemex is going to receive a subsidy of 1,100 million pesos per month, it can sustain these prices, but how ironic are you going to sell a cheaper fuel, but in reality, you are going to take it from the same taxes that you charge people,” he argued.

He said that between affected commission agents and personnel there would be at least 16,000 thousand who work in the final delivery chain of the product, “with that price there are not even 100 pesos of utility a day, so the plants, as they do not have labor guarantees, are going to start to close”.

The Federal Government “passed over everyone and the plants are closing and as of this Tuesday it will be a day without LP Gas in the city.”

PUEBLA

Workers of the Gas de Oriente company demonstrated at plant II, located in Santa Clara Ocoyucan, after they reduced the commission they obtain for the sale of each cylinder from the entry into force of the new fuel prices, established by the Energy Regulatory Commission (CRE).

The distributors of the company began a work stoppage this day, leaving at least a dozen units in the parking lot and at the access to the company with which they daily distribute the cylinders or liters of gas.

A worker, who asked to omit his name for fear of retaliation, explained that the company paid them a commission of 50 pesos for each tank sold, however it reduced it to 20 after the Federal Government announced the implementation of the regulation of prices.

“The Government issued its decree, it said we are going to set an official price so that it is even, but now what the businessmen are doing is that they are going to give the delivery driver in the tower so that they can keep their profits,” he said.

Another employee said that at the time the company benefited by selling the gas tank for more than 500 pesos and never increased the commissions for sellers, however now it affects them to safeguard their interests.

“With the price that was 550 pesos, who was affected? Well, the client. We had a commission of 50 pesos but they (the company) had a lot of profit and they never raised the commission to us as the gas was increasing. And now that it goes down, yes, that is our disagreement. “

He assured that the decision the company made to save its finances seriously affects those who sell the product because with that commission they pay the gasoline and maintenance costs of each delivery truck.

The complainants indicated that they will maintain the stoppage of activities until the manager of the company agrees to restore the payment of the original commission because they are not willing to work without making a profit.

VERACRUZ

Gas companies of Veracruz do not rule out resorting to legal means to reverse the decision to regulate the price of LP gas with a maximum price to the public set by the Energy Regulatory Commission.

Enrique Cházaro Mabarak, a counselor of the Association of Gas Distributors of the Center of the Country, indicated that through the business groups, approaches are being sought with competent authorities, to expose the disagreement and the repercussions that the new price regulation policy brought to the sector.

“We are in dialogue through the gas associations and competent authorities to reach an understanding, there are legal instances to which we are going to resort, and we like the lowering of the price of gas because more gas is consumed, which we must see with them is that Petróleos Mexicanos or the supplier also lowers our prices, ”said Cházaro.

Cházaro Mabarak affirmed that the gas companies in Veracruz accepted the measure despite their disagreement, which has reduced the price of a kilogram of LP gas that is supplied to homes, businesses, and industries by up to four pesos.

However, they would expect the Federal Competition Commission to be the entity that regulates prices since it is the appropriate body to carry out such action.

“The Federal Competition Commission is the appropriate body to be able to confirm or ratify whether there are effective competition conditions, this collegiate body that is the Federal Competition Commission has not yet issued its resolution, however, the Energy Regulatory Commission has already advanced to say that it needs to set prices for LP gas in Mexico ” , he declared.

Mexico Daily Post