Saturday, February 6, 2010

Rising Prices?

While doing the ethics homework, I found an article saying that starting today the gasoline's price will be rising 8 cents. The magna will be costing 7.94 pesos per liter, the premium 9.70 pesos per liter and the deisel 8.32 pesos per liter. The article at the newspaper, El Universal, states that it is being raised because the government want the prices to be the same as the prevailing prices at the United States, who is Mexico's main trading partner.

I think this will affect our country's economy in a GREAT way. Why? Simple, because oil and gasoline are on what our country relies. How do we get a product to the other side of the country? A truck takes it there. What does the truck need to get to the other side of our country? Deisel. The distributors need to recover the money that is being spent on deisel, so what do they do? Raise the product's prices. That I guess affects mostly the middle and low classes. Since for them, saving a few cents would be a great help to use it on other things.

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