Gasoline prices depend on various national and international factors, such as the price of oil, the exchange rate against the dollar, the profit margin of gas companies, logistics costs, and even subsidies.
These factors cause gasoline prices to change constantly, sometimes taking users by surprise.
For this reason, government agencies such as the Energy Regulatory Commission (CRE) and the Federal Consumer Protection Agency (Profeco) constantly publish updated gasoline and diesel prices throughout Mexico. Here are the prices for October 18 in National News.
Mexico: What is the price of gasoline?
Average price of regular gasoline per liter: 23,997 pesos.
Average price of premium gasoline per liter: 25,391 pesos.
Average price of diesel per liter: 25,543 pesos.
Prices reported by permit holders online in accordance with the obligation established in Agreement No. A/041/2018 of the Energy Regulatory Commission.
How the price of gasoline is defined
The price of gasoline can vary in Mexico due to a variety of factors such as the reference price, taxes and logistics.
The reference cost is based on international oil prices, since it is quoted in dollars at a global level, therefore, the average value of fuels is modified with respect to the exchange rate of the dollar and the peso.
During the first months of the covid-19 pandemic, the influence of international oil prices on gasoline was evident when the hydrocarbon fell to historic figures, which caused gasoline to register very low costs, until the “black gold” stabilized and with it the value of its derivatives.
The same thing happened, but in the opposite case, during the first half of 2022, when international oil prices skyrocketed and with it the cost of fuel worldwide.
However, there were countries that were less affected due to different measures, such as in Mexico, where a subsidy applied by the Federal Government kept gasoline prices relatively stable.
This subsidy is a stimulus to the Federal Special Tax on Production and Services (IEPS), which directly influences the price of fuel and is determined by the Ministry of Finance and Public Credit (SHCP).
Costs can also be modified for logistical reasons, that is, transportation and storage. If fuel prices rise when transporting refined oil and gasoline in tankers or by ship, costs will increase.
Other factors that influence fuel costs are due to geographic location.
Source: infobae
