Mexico’s Natural Gas Companies Warn of Indefinite Shutdown

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A strike by distributors and commissioners of one of Mexico’s largest gas unions, begun on Monday, Aug. 2, will continue until a price agreement is worked out with the government, according to industry leaders.

The closure of natural (LP) gas distribution stations given the Andrés Manuel López Obrador (AMLO) administration’s arbitrary decision over the weekend to cap the price of LP gas will be for “an indefinite period,” Valley of Mexico Gas Distributors Union leader Adrián Rodríguez said Tuesday, Aug. 3.

“This strike will continue indefinitely,” he said, noting the current price ceilings have left many distributors with no profit margins.

“This is what happens when a national price is regulated so quickly, without studying the competent authorities, without making a true analysis and without taking into consideration the real cost of hydrocarbons.”

Although not all LP gas distributors are participating in the work stoppage, various parts of Mexico City, the State of Mexico and Hidalgo have already registered natural gas shortages due to the protests.


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