Mexico seeks to tame prices after gas protests

MEXICO CITY: Mexico’s government, business leaders and agricultural groups agreed on Monday to prevent increases in the cost of basic goods after a gasoline price hike sparked daily and sometimes violent protests.
As thousands marched again in Mexico City, President Enrique Pena Nieto did not signal any backpedaling on the government’s unpopular decision to increase gasoline prices by up to 20.1 per cent.
But he was joined by business leaders at his official residence in Mexico City to announce an agreement to keep the prices of other goods under control.
“The business sector is making the commitment to help in order to not resort in an indiscriminate increase in prices,” Pena Nieto said.
“This is possible because gasoline, for the majority of products, represents just a fraction of production costs,” he said. — AFP