Background on Enrique Medrano Meza and the Gas Industry
Enrique Medrano Meza, the top leader of the National Gas Workers Union, was arrested by federal forces on charges of drug trafficking and extortion. Just two months prior, Medrano Meza led resistance actions aiming to remove the ceiling on liquefied petroleum gas (LPG) prices and participated in negotiations with sector authorities.
Medrano Meza’s Arrest and Its Implications
Following his transfer to Reclusorio Norte, Medrano Meza’s supporters have threatened to suspend gas supply if he is prosecuted. The government of Mexico, according to security tables, is losing the battle against food inflation due to gas station owners and truckers.
The success of the National Alliance for Clean Energy and Efficient Cookstovies (PACIC) depends heavily on controlling tortilla prices, which remain high despite actions by Economy Secretary’s officials. The price of a kilogram of LPG has a ceiling, set by energy regulators. Experts argue that this policy does not benefit lower classes but instead strengthens industrial tortilla producers and harms gas distributors.
Producing a kilogram of tortillas requires only 0.85 pesos’ worth of gas, less than 5% of the final price ranging from 18 to 30 pesos across various regions. Automated, scaled-up tortilla production using Celorio family-developed models has made these subsidized energy sources even more detrimental to the gas industry.
Distributors’ Grievances and Mediation Efforts
Gas distributors, facing nearly nonexistent profit margins, have complained to two key officials close to the president: Energy Secretary Luz Elena González and Consumer Procurer Iván Escalante. Medrano, who stepped down from gremial representation three years ago, intervened in the dialogue initiated by authorities with gas distributors, whose price control complaints have been intermittent since 2023.
Despite mediation efforts led by Secretary of Governance Rosa Icela Rodríguez, no party emerged unscathed. Gas workers launched a media campaign to expose the intransigence of the Energy Secretary and warn about the consequences of artificially keeping LPG prices low.
Secondary Effects: Puerto Vallarta Airport Expansion
Expansion at Puerto Vallarta International Airport
Under the direction of Omar Gildardo Torres, Puerto Vallarta International Airport is preparing to double its capacity with the construction of a new terminal building. This modern, imposing structure will span over 74,000 square meters and cost more than 9,000 million pesos. This growth will further solidify the airport’s position as one of Mexico’s top five international hubs, currently connecting to 56 domestic and international destinations.
Key Questions and Answers
- Who is Enrique Medrano Meza? He is the former top leader of the National Gas Workers Union in Mexico.
- What charges was Medrano Meza arrested for? He was detained on drug trafficking and extortion charges.
- Why is Medrano Meza’s arrest significant? His supporters threaten to suspend gas supply, impacting the government’s battle against food inflation. The arrest also highlights tensions between gas distributors and authorities over price controls.
- What is the PACIC, and why is it important? The National Alliance for Clean Energy and Efficient Cookstovies aims to control tortilla prices, crucial for lower-income classes. However, its success remains limited due to high prices and subsidized energy sources favoring industrial producers.
- What is the status of Puerto Vallarta International Airport? The airport is expanding with a new terminal building, which will double its capacity and strengthen its position as one of Mexico’s leading international airports.
