Deregulated gas prices coming this month in Mexico

But nearly 500 gas stations in Yucatan, Campeche and Quintana Roo will still sell gas at prices fixed by the government….

The deregulation of gasoline prices in Mexico today is a reality. Starting on November 30, nine out ten gas stations will sell gasoline at prices determined by supply and demand, including Mexico City and the State of Mexico – the country’s top gas consumers, El Universal reports.

From all these gas stations, close to 2,578 are operated by 25 new brands – different from the PEMEX franchise – and represent 22% of the total of gas stations in the country, which up to this month are 11,735.

Thus, in most parts of the country, the maximum prices which the Ministry of Treasury used to fix will no longer be valid, according to Guillermo García, president of the Energy Regulatory Commission (CRE).

By then, only 494 gas stations in the southern states of Campeche, Quintana Roo and Yucatán will continue selling the products based on the prices established by the Ministry of the Treasury.

Photo: reikal.com.mx
Pemex gas pump.

Therefore, 96% of Mexico’s population (around 118 million people) will have access to deregulated prices on November 30.

Mr. García claimed this is the result of the new oil and petroleum market arising from the energy reforms, and said a sudden increase in gas prices is not expected.

During an interview with EL UNIVERSAL, Mr. García detailed “the price of each liter of gasoline in its Magna (Regular), Premium (Supreme) and Diesel variety will be determined by supply and demand, as it happens in the United States or in Central America.”

From that moment and, especially, after January 2018 when the market will be deregulated in its entirety, Mexico will take as a reference the values of the gas stations in Texas, “which is the most solid market on (petroleum) products in the world.”

Yet when asked about the risk of a sudden price increase for gasoline, Mr García replied: “there will always be a price difference between the relevant market and the point of consumption.”

He further added the costs of logistics and transportation would cause an increase in the overall price.

Source: eluniversal.com.mx