Pemex’s domestic oil refining in the third quarter rose more than 16% to hit 807,000 BPD

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For the first nine months of this year, Pemex reported a 17% rise in gasoline sales in Mexico while domestic diesel sales were nearly 47% higher, according to a company presentation, part of its goal to reclaim market share from private competitors.

Susana Cazorla, a director at energy consultancy SICEnrgy, said that despite the reported improvements in crude processing, Pemex remained unable to completely meet domestic demand.

“It was not enough to supply its gasoline and diesel market – almost two thirds of its sales in the third quarter of 2022 were imported products,” she said after comparing separate import data, referring to the company’s continuing reliance on imported gasoline and diesel shipments mostly from U.S. suppliers.

Oil production costs for Pemex this year rose by about a quarter to $18.38 a barrel, compared to average costs last year, due to an increase in contributions to state coffers, Chief Executive Octavio Romero said earlier this week.

In recent months, Pemex also faced increased scrutiny of its environmental record after scientists detected two massive methane leaks in December and August from one of its largest offshore fields in the Gulf of Mexico.

Pemex disputed the volume of methane released into the atmosphere but did not report the incident despite what experts said was a legal obligation to do so.

Lopez Obrador formally opened a major oil refinery in July, a signature project for the leftist leader who argues it will help the country cut its dependence on foreign gasoline and diesel supplies. But officials said it will not start production until next year.