Mexico: The outcome of strategy deficit

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Regional view – Emerging Markets

Last Friday, a gas pipeline exploded in the Mexican state of Hidalgo, resulting in the loss of at least 85 lives. Investigations are in progress, but reports attribute the accident to the same cause of numerous, similar deadly blasts in the past—people illegally tapping pipelines for fuel. The latest tragedy calls attention to an ongoing gas shortage that has occurred since end-December, when the government limited gas delivery by pipeline in favor of tanker trucks. The reason? To prevent fuel theft, which the state-owned oil company said cost it USD 3 billion last year.