Even though international oil prices have dropped in recent weeks, the Mexican government raised pump prices Wednesday for the third time in August.

The one-centavo hike in unleaded gas means that gas prices have increased by nine centavos since August 1.

The Mexican Energy Secretariat has indicated that stepping up the rhythm of gas increases will help bridge the gulf in prices between the United States and Mexico.  Another objectove seems to be to gradually reduce the government’s massive 19 billion-dollar annual subsidy of gasoline. Although the Mexican Treasury says the subsidy is still very much government policy, the now regular incremental gas hikes would suggst otherwise. 

Economists fear that the hikes will put further pressure on inflation, now running near six percent – the highest in six years.