November 1, 2016

Mexican Drivers Not Pleased with Increases in Gasoline Prices

Mexican motorists are unhappy with recent gasoline price increases which began in September. Such prices have reached new highs in both gasoline and diesel fuel. Magna now costs 13.98 pesos per liter, while premium gasoline costs 14.81 pesos and diesel has increased to 14.45 pesos per liter. However, according to organizations such as Global Petrol Prices, and in the wake of announced gas price increases in Mexico, Mexico continues to be one of the six most economical countries in Latin America to purchase gasoline and diesel fuel. Even so, the Mexican press has reported the gas increases in light of Mexico’s minimum wage, which continues to be among the lowest in Latin America. The increase in gas prices was bad news for the Mexican public, who continue to hope for an announcement that gas prices will moderate based on traditional economic supply and demand factors. The Mexican public has struggled to understand why gas prices could be falling in other parts of the world, while those in Mexico continue to increase, particularly in following prior government announcements that gas prices had plateaued.