If it weren’t for the fiscal stimuli, gasoline in Mexico would cost between 28 and 29 pesos.
The Government of Mexico “presumed” on its social networks that the price of gasoline in the country was one of the cheapest in the continent, however, the fiscal stimuli give it a better position compared to other countries that do not grant this type of subsidies.
According to data from the Global Petrol Prices site (source used by the Government of Mexico), the average price of regular gasoline in Mexico during March 14 was 23.07 pesos per liter, which placed it as the eleventh country (of a sample of 33 countries) to offer the cheapest gasoline in the American continent .
The two countries that sell the cheapest gasoline liter were Venezuela and Bolivia, with average prices of 0.52 and 11.39 pesos, respectively.
These two countries have the advantage that their government establishes a maximum price or fixes fuel prices.
In the case of Venezuela, a bottle of water usually costs more than a liter of gasoline, since the Government practically ‘gives it away’, while in Bolivia, the price is regulated and frozen by the State, with the aim of not affecting the inflation.
If the price of gasoline currently offered in Mexico were removed from the fiscal stimulus granted by the Ministry of Finance and Public Credit (SHCP), a liter of gasoline would cost between 28 and 29 pesos, which would place the country among the 10 most expensive on the continent.
Mexico could only boast of having lower prices than Barbados (43.16 pesos per liter), Uruguay (36.74), Belize (35.12), Canada (32.78), Jamaica (31.20), the Dominican Republic (29.51) and the Bahamas (29.19).
The ‘real’ prices of gasoline in Mexico would be more expensive than its neighbor to the north, the United States, which currently has a national average price of 25.9 pesos per liter , however, the US Government does not offer any stimulus to gasoline.
The Global Petrol Prices portal specified that there is a significant difference in the prices that are handled around the world, although as a general rule, the richest countries have the highest prices, while the poorest countries and the countries that produce and export oil They have significantly lower prices .
Gas stations in Mexico are warned not to abuse
Last weekend, Profeco, the Energy Regulatory Commission (CRE), and the Security, Energy and Environment Agency (ASEA) worked together and closed three Shell brand gas stations, and although they specified that their temporary closures should be Failure to comply with environmental or regulatory standards was taken by the gas sector as a message not to abuse prices.
Javier Diaz, commercial director of GasGas Analytics, pointed out that these actions are a way of warning the gas sector that those service stations that handle prices above the average will have priority to be supervised in all senses.
He added that during the last 10 days there was an increase of 20 cents in the price of gasoline, which represented the highest increase so far this year.
“Going forward, we have already seen a drop in WTI oil prices, so we could expect that prices will not continue to rise, but if they will remain at current levels, it will depend on the macroeconomic situation to see if there is a reduction in oil prices and exchange rate”, he pointed out.
Despite the fact that the international price of oil has fallen in recent days, the effect takes time to be reflected in service stations for a period of approximately 10 days.
At the close of this Tuesday, the price of WTI oil stood at 95 dollars a barrel, after having reached levels of 120 dollars, this helped to reduce nervousness due to additional inflationary pressures, indicated a report by Grupo Financiero Ve por Más.
Mexico Daily Post