:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/elfinanciero/PDIGQWEH4ZGYJKFQF6HRF6444I.jpeg "Russia’s invasion of Ukraine will have “minimal effects” on the Mexican economy, says AMLO – El Financiero")
President López Obrador reiterated the work of his government in maintaining gasoline prices, as well as the value of the national currency, and stressed that the war between russia and ukraine will not affect considerably the country’s economy.
“We have fulfilled the commitment not to increase the price of fuel, that people do not worry about this situation of invasion that is being suffered, the war is very unfortunate, yes, we cannot be oblivious to that but the effects it may have on the national economy are minimal”He stated this Monday.
“As for the weight when the invasion occurs, it goes up, the dollar increases in relation to the peso but it is already back to normalit is stable, we are practically without devaluation in the entire six-year term, that had not happened in several six-year terms, the economy is doing well, jobs are being created”, he explained.
Plan to face rise in gas and gasoline
According to the president, the Federal Government already has a plan in case the economic effects of the conflict between Russia and Ukraine affect the prices of imported gas and fuels.
“We have been prepared for some time so that, if the price of imported gas increases a lot, we can start up all the electricity generation plants that do not require gas to avoid rising energy costs”, he explained last Thursday.
“We already have that plan to act, for example, produce more electricity with waterWe are going to start up the hydroelectric plants at full capacity, and other measures, we are prepared for that, with the purpose that there are no blackouts, that there is no lack of electricity and that the price does not increase, “he added.
In the event that the cost of imported gasoline increases due to the increase in crude oil, the government will resort to fuel subsidybetter known as the Special Tax on Production and Services (IEPS).
The subsidy will help the increase “not passed on to consumersthat the price of gasoline be maintained as agreed, that it not increase above inflation”, emphasized the president.
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