A couple quick facts that include those that Moisheh has already stated.
1) The "supposed" closure of pipelines is to create a shortage which is obvious by not importing fuel from the U.S.
2) The explosion would likely not have happened if the pipelines were not shut down.
3) AMLO stated yesterday that the pipelines are old, outdated and need to be replaced, another reason for him to promote Pemex. The average age of gasoline pipelines in the U.S. is 50 years old.
4) The acquisition of tankers is not the government's job, that belongs to Pemex.
5) The Mexican economy has already lost 3.5 billion dollars because of transportation issues. Imagine all the produce, meat, and other perishable products that are not shipping on time. The produce hubs are reporting a 40% loss of product due to the shortage.
6) AMLO is from Tabasco which is an oil rich state and at one time one of Pemex's largest producers. He wants to revive the industry, although as Moisheh pointed out, it will take at least 10 years to bring a new refinery online as well as an estimated cost of 4 billion dollars per unit. The existing refineries are running between 40 and 70% and need dire attention.
7) The shortage, in the long run, will not bring lower fuel prices. 40% of the price per liter is a federal tax. Pemex franchises earn 94 to 96 centavos per liter, much more than their U.S. counterpart.
๐ The explosion of the pipeline and the tragic loss of over 90 Mexicans proves that this is not only a cartel issue but also a cultural problem. AMLO stated that it is out of necessity that people steal gasoline. No necessity requires stealing gasoline. Mexico is a poor country but nothing compared to African or Asian countries where people live on a dollar a day.
9) Pemex is co-owner of a refinery in Houston so there should be no issue with the importation of product.
My personal prediction is the following: This is a government-proposed shutdown of the pipeline to create a shortage. There is a huge surplus of fuel sitting off the east coast near Veracruz and gasoline has a shelf life. Prices will drop temporarily to use the existing fuel, and AMLO will be able to live up to his promise of lower prices. Also, with the cartels which continue to attack pipelines and with the possibility of attacking tankers in the next weeks, AMLO will be able to militarize the country.
He has accomplished 4 of the 7 acts in the last month that Hugo Chavez of Venezuela also put into practice his first month as president. I have the list.
Very sad situation.
JMHO
