Mexican Gas Prices: Low but Rising

(México, AN 2 November) The finance ministry in Mexico has recognized that the price of unleaded gasoline in Mexico is just slightly under the average price in the United States. In the coming year, more price hikes are expected. The rates charged by the government-owned refiner-distributor Pemex are not keyed to costs; rather, they are administered prices that generate revenues for the government, somewhat like taxes. Mexican gas prices are programmed to rise gradually over time, regardless of market forces. The current price of a liter of unleaded is $8.86 pesos, which, at $12 pesos/dollar, translates into US$ 2.79. The finance minister, Juan Manuel Pérez Porrúa, indicated that US gas prices are the guide for where Mexico’s prices should be; however, the objective is to keep them just below the US levels. The minister added that the price of unleaded fuel in Mexico is among the world’s lowest, and he pointed to Europe, where the same product could be sold at 250% of the Mexican price.