Latest reports are claiming that Mexico is facing another risk in its economy as there is a widespread fuel-theft there these days and this exposes the country to open gas trade. Worse, the country might be facing a decrease in the number of foreign investment.
Thieves are now working differently to make a living in Mexico as they are tapping gasoline and diesel which as reported hit the record high price in the country. After this, they will offer and sell this on the black market in the country which could even possibly reach Central America and the United States.
According to a report from The New York Times, many of the consumers in Mexico would often go to market at dawn not to purchase fruits and other basic commodities but to buy cheap gasoline. Then one can also see several vendors who usually put up shops with the stolen gasoline and fuel. And when ti comes to the price, as expected, it is much lower than the price at the gas stations.
Because of this gas-theft epidemic, Mexico is not facing a risk of losing foreign investors. If this will continue, those who have invested in gasoline companies might decide to pull their investment since consumers are now patronizing those offered on the open gas trade which is stolen as per Bloomberg.
This depressing crisis in Mexico is taking a billion dollars from the federal government from the stolen fuel alone. With this, the government seems not to have the full control to stop this. There are some factors which have been attributed to the causes of this crisis.
Some reports have claimed that one of the reasons is the state of the law in the country. As of the moment, Mexico is having a weak rule of law. According to one energy analyst, this is the time that the country needs the strict implementation of the rule of law most specifically in the private sector.
Moreover, another factor being pointed out is the increasing number of thefts due to the involvement of some of the cruel criminal groups and organizations. That's why Mexico needs to devise ways and policies in order to stop and settle gas-thefts epidemic immediately before it's too late.