The Treasury will keep the price of gasoline stable throughout Mexico, including at the border

The federal administration, led by Andrés Manuel López Obrador (AMLO), announced that despite variations in fuel costs around the world, the Ministry of Finance and Public Credit (SHCP) will keep gasoline prices stable in Mexico, including the border region.

In an official statement, the federal secretariat reported on Sunday, April 3, that despite the consequences on hydrocarbons resulting from Russia's invasion of Ukraine, stimuli will be implemented in the value of gasoline and diesel in order not to affect the economy of families.

In this regard, and to generate certainty among consumers, the SHCP explained that Petroleos Mexicanos (Pemex) has maintained its supply of gasoline and has inventories of domestic production to supply demand in the north and in all regions of the country.

It should be recalled that in previous administrations gasoline costs were “released” to the market, meaning that the price of a liter of fuels complies with the law of supply and demand, so that State regulation in this area had been nullified; however, in the face of fluctuating petroprices, the government federal decided to intervene so that consumers are not affected.

As for the increase in gasoline costs, it is explained by the economic and trade sanctions imposed on Russia as a result of the military offensive it deployed in Ukraine, since Russia is one of the world's leading oil exporters, so the blockade imposed on its ability to trade with it had a direct impact on global supply, and since demand was the same, the price trend went up.

In Mexico, regular or magna gasoline is sold at an average price of 22.12 pesos (approximately USD 1.11) per liter, while premium gasoline is priced at 24.17 pesos (approximately USD 1.21) per liter. While in the United States, for example, gasoline has reached prices of up to USD 1.22, and at the beginning of the year it was quoted at 96 cents on the dollar, which represents an increase of almost 40 percent.

In addition to this, it should be recalled that the SHCP acknowledged that there is already a shortage of gasoline in the border region. This is due to an imbalance between supply and demand. In recent weeks, citizens of the United States have crossed the border to load their tanks in Mexico, because the price of fuel is lower thanks to fiscal stimulus.

The announcement was made on Saturday, a few hours after the same institution will indicate that during the week of April 2-8 it will not apply tax incentives through VAT and ISR to importers and refiners selling gasoline in the border strip.

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