Agreement to Keep Gasoline and Diesel Prices in Check Is Renewed

The Mexican government has decided to renew the voluntary agreement in an effort to keep fuel prices in check and counteract the effects of inflation and rising costs, President Claudia Sheinbaum confirmed.

In a brief message posted on her X account, the president announced the renewal of the agreement “in support of the economy and the well-being of Mexican families.”

Along with the head of the Ministry of Energy, Luz Elena González; the Secretary of the Environment, Alicia Bárcena; and the head of the Ministry of Finance and Public Credit, Édgar Amador Zamora, gasoline station owners were received at the National Palace to expand this strategy, which imposes a price cap of US$1.42 per liter on Magna or regular gasoline for the public.

The agreement calls for maintaining the price of a liter of diesel at US$1.60. It is worth noting that this week, the federal government reportedly increased the tax incentive for Magna and Premium gasoline while reducing it for diesel.

Since August, when six months had passed since the start of the conflict in the Middle East, oil prices have been volatile due to the uncertainty surrounding the Strait of Hormuz, which previously accounted for one-fifth of the world’s crude oil supply.

For this reason, since March, the federal government has been raising and lowering the prices of fuel tax incentives as a way to mitigate the impact of oil price volatility on gasoline and diesel prices in our country.

 For example, last week, the national average price of premium gasoline rose to US$1.69 per liter, according to data from the PETROIntelligence platform. Meanwhile, the price of diesel fell to US$1.60 per liter, while the price of Magna gasoline remained unchanged at US$1.40.