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President Claudia Sheinbaum Will Protect The Price Of Gasoline.

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Actions against Speculation in the Price of Gasoline.


The President of Mexico, Claudia Sheinbaum Pardo reported that she instructed the Secretary of Energy, Luz Elena González Escobar, to meet with the gas station owners who have service stations to establish mechanisms to avoid the increase in the price of gasoline due to speculation.

“We are interested in avoiding an increase in the price of gasoline due to some type of speculation. So, that is why we are doing the analysis and the Secretary of Energy is already meeting with gas station owners to avoid an increase derived from some type of speculation and to be able to have gasoline, as we promised, that does not increase in real terms, that means that the only thing that can increase is what is related to the inflation of the previous year,” she said.

She pointed out that the price of gasoline is updated according to the Special Tax on Production and Services Law (IEPS), which establishes that its price is adjusted according to the inflation of the previous year. He also reported that in special situations the IEPS is controlled to avoid cost increases.

In Mexico, it is not possible to establish a fixed price for gasoline due to various economic, legal and market factors that influence its cost. Here are the main reasons:

Since the Energy Reform of 2013, the fuel market in Mexico was liberalized. This means that:

● Prices are no longer controlled directly by the government, but are determined by supply and demand in the market.

● Private companies can import, distribute and sell fuels, promoting competition.

● This liberalization allows daily price adjustments based on external factors. The price of gasoline in Mexico depends largely on the international oil market, since:

● Mexico imports more than 60% of the gasoline it consumes.

● Variations in the price of crude oil worldwide directly impact the cost of production and distribution.

● Factors such as international conflicts, OPEC production cuts, and natural disasters affect the global price of oil.

● Purchases of imported gasoline are made in dollars.

● If the Mexican peso depreciates against the dollar, the import price increases, affecting costs for the final consumer.

In Mexico, the price of gasoline includes taxes such as the Special Tax on Production and Services (IEPS), VAT, and other charges.

● The government can adjust the IEPS to smooth out fluctuations in international prices and protect consumers.

● However, a fixed price is not viable, since tax revenues also depend on these contributions.

The transportation, storage and distribution of gasoline varies according to the geographic area.

● In more remote or difficult-to-access areas, costs are higher, which prevents establishing a single price throughout the country.

● The price reflects these additional costs in each region.

The entry of private companies such as Shell, BP, Total and ExxonMobil has generated competition in the market:

● Companies set their own prices to attract customers.

● A fixed price would limit free competition, discouraging private investment and growth in the sector.

Instead of setting prices, the government applies temporary subsidies or adjustments to the IEPS to avoid drastic increases in the price of fuels.

● This mechanism seeks to balance the economic impact without compromising public finances.

A fixed price for gasoline in Mexico is not viable due to:

  1. The dependence on international oil prices.

  2. The variability of the exchange rate.

  3. Differentiated logistics costs.

  4. The need to promote competition in the market.

  5. The use of taxes as a tool for regulation and financing.


Instead, the government opts for an open market model with fiscal adjustments to stabilize prices and protect consumers against extreme fluctuations.

The President stressed that after her first tour of the 32 states of the Republic as President of Mexico, she warned that in some states the price of gasoline is around 26 pesos, when it should be less than 23 pesos on average.

“In this tour of the country that I have been doing, there are places where the price of gasoline is 26 pesos, which is totally out of the norm. In reality, there is no maximum price for gasoline, it has not been established since 2013, with the energy reform, the maximum price was eliminated, but it is not possible that prices in some places are as they are," she said.