Mexico fishermen resume Pacific oil port blockade

Fishermen protesting rising diesel prices resumed a blockade of Mexico's Salina Cruz marine oil terminal, a major refined products distribution point on the southwest coast, state oil company Pemex said. The fishermen blockaded the port for much of the day on Thursday but ended their action in the evening after calling for talks with the government. Most of Mexico's oil is exported from Gulf of Mexico ports.

Salina Cruz handled around 2 percent of Mexico's oil exports over the first 11 months of 2008, according to government data.

The Mexican government froze gasoline prices on Wednesday as part of an economic stimulus package but diesel prices, which are around 25 percent lower than in the United States, will continue to rise on a weekly basis.

Pemex has warned the blockade could lead to oil product shortages along Mexico's Pacific coast. Mexico has little storage infrastructure for oil products and many of its distribution terminals only hold enough inventory to meet two days of demand.

Mexican fishermen's groups have been pushing for a reduction in marine diesel prices in past weeks, saying recent price increases have eroded their earning power.

Fishermen in the Salina Cruz area have also been protesting the imposition of a larger safety zone around the port where they are prohibited from fishing. Pemex says the safety zone is required to meet international standards.

 

Source: www.reuters.com