Mexico to Freeze Gasoline Prices, Boost Jobs Spending

(Bloomberg) — Mexico will freeze the price of gasoline this year, cut electricity rates for some industries and expand unemployment benefits as part of a financial stimulus to help the nation weather the global financial crisis.

The government and industries will increase spending on infrastructure such as roads, airports and sea ports to 570 billion pesos ($42.4 billion) this year, President Felipe Calderon said today in Mexico City. The price of heating gas will be cut by 10 percent and frozen for the rest of the year.


Mexico faces a significant challenge this year as the worldwide economic crisis worsens, sapping demand for exports and threatening jobs, Calderon said. Recessions in the U.S., which buys 80 percent of Mexican goods shipped abroad, as well as Japan and Europe present a risk to Mexico