Mexico’s New Year starts with gasoline price hikes

Photo: Pemex gas pump.

The fuel price war in Mexico has started with the new year. At some gas stations, the Magna gasoline brand (regular unleaded) reached MXN$17 per liter, Premium gasoline brand (high octane unleaded) exceeded MXN$19 per liter, while in other gas stations the prices averaged MXN$16 and MXN$18 per liter, respectively.

El Universal newspaper reported the price increase derives from decisions being taken by gasoline businessmen, encompassing transportation, storage, and distribution, who will be able to set prices based on the exchange rate and their operating costs.

Pemex gas pump.

According to the Energy Regulatory Commission (CRE), users must monitor the prices of service stations near their homes, businesses or jobs to fill their fuel tank at the most affordable gas station.

Through a statement, Mexican state oil company (Pemex) reported that the policy of gradual fuel pricing, which has been applied successfully for a year in the country, is being complied, adding that it rejects any speculative comments on alleged increases arisen from them.

PEMEX explained that the formula that determines the prices of gasoline and diesel wholesale in Mexico includes mechanisms that reduce their volatility, so “there is no basis to estimate a sharp
increase in these prices,” adding that the formula guarantees stability with daily adjustments, in accordance with the conditions of an open and competitive market, as it happens in the rest of the world.




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