Gasoline in Mexico is more expensive than in the US

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Fuel will become more expensive in the United States in the first half of the year: analysts

In Mexico, the price consumers pay for a liter of gasoline is higher than that of Americans, with differences of more than two pesos per liter, according to data from the Energy Information Administration (EIA).

In a morning conference at the National Palace, the spokesperson Ana Elizabeth García Vilchis, in her section Who is who in the lies, stated: “We started, with the first lie of 2022. They invent gasoline, but they drop the theater. The news cogenerators did not rest at the end of the year and launched a disinformation campaign saying that in 2022 there would be an increase in gasoline, ensuring that it would be at 26 pesos per liter. “

And in the country’s gas stations, prices are still above 25 pesos per liter of premium gasoline, and even up to more than 26 pesos, as El Sol de México found in the service station on Mazatlán street, in La Condesa, Mexico City.

According to the EIA, the average price of regular gasoline registered on January 3, 2022, in the United States, was 18.22 pesos per liter.

The most recent data from the Federal Consumer Prosecutor’s Office (Profeco) register an average price of 20.72 pesos for each liter of regular gasoline in the country; that is, 2.49 pesos above what Americans pay on average for energy.

For the US market, gasoline is also expected to increase towards the first half of the year. Patrick De Haan, GasBuddy’s chief analyst, warned that prices in 2022 will be “up front and loaded.”

In an interview with Fox Business, he commented that the highest gasoline prices “will be in the first half of the year.” GasBuddy’s fuel projections put a national average of four dollars a gallon (84 pesos) as a real possibility for the year that begins.

In the EIA report, among the eight regions considered, the Gulf Coast is where the lowest cost for regular gasoline is found in that country, with a starting price of 16.35 pesos per liter, or 4.37 pesos per above the last average public price released by Profeco, as of December 30, 2021. The difference is 2.53 pesos when compared to the lowest price identified in Mexico of 18.88 per liter, which was located in Puebla capital, under the Mobil brand.

Profeco reported on January 3 that the average price of premium gasoline was 22.69 pesos per liter.

And the EIA cited that the average price for high-octane gasoline was 22.28 pesos, that is, 40 cents below the average Mexican price.

If the lowest cost for premium gasoline on the Gulf Coast, which borders the states of Chihuahua and Coahuila in the north of the country, is taken as a reference of 19.89 pesos, the difference is 1.09 pesos for each liter of gasoline identified with the red color, when taking the lowest price in Mexico reported by Profeco of 20.99 pesos per liter, which was located in two gas stations in Coatzacoalcos and Boca del Río, Veracruz.

In an interview, Óscar Ocampo, Energy coordinator at the Mexican Institute for Competitiveness (Imco), pointed out that the difference is centered on the lack of competition between different actors in Mexico, as well as the lack of physical infrastructure in storage and transportation, as in Storage and Distribution Terminals (TAR).

He added that the energy authorities in the neighboring country can define their prices due to the level of imports in that country, which is more limited in Mexico to only 74 players in the hydrocarbon import market, as he referred that the Ministry of Energy (Sener ) has rejected more than 1,800 import permits, according to Onexpo data.

Ramses Pech, an energy sector analyst, explained that the increase in Mexico is due to a higher cost of refining crude oil, since the processing of crude oil and the value of energy represent 63 percent of the value of gasoline.

In contrast, he pointed out that distribution and marketing are equivalent to 11 percent of the price of gasoline in Mexico, where Pemex has made a greater effort with pipes full of fuel throughout the country.

“The refineries have been modernized in recent years, but the economy is not improving. With the clear departure of the Joe Biden administration from fossil fuels, one wonders if there will be a lot of investment in the United States in refining capacity, “De Haan questioned.

Source: elsoldemexico.com.mx

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