Mexico rethinks fuel subsidies

[phantom power]

Mexico's subsidies for domestic fuel are taking a growing share of government revenue, increasing the urgency for Congress to reform the state oil monopoly, said Dionisio Perez-Jacome, deputy finance minister for the budget.

President Felipe Calderon's initiative to give state oil company Pemex more leeway to hire private companies for production and refining would reduce the cost of subsidies by enabling Mexico to produce more of the gasoline it consumes, Perez-Jacome said.

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