The 20% rise in Mexican gasoline prices effective on January 1st should not reduce auto sales in the near term but will ultimately boost the market for more fuel-efficient cars, said Guillermo Rosales, deputy director of the Mexican association of automobile distributors (AMDA).
"In the short-term, I don't think there will be a decline in the number of vehicles sold," Rosales said in a statement to Reuters. "In the medium to long term, we'll see a change in the trend that favors models which consume less [fuel]."
The hike, the result of the government’s decision to deregulate gas prices, comes as Mexico prepares for an uncertain 2017.
The value of the peso has plunged, inflation is rising and U.S. President-elect Donald Trump has promised to rip up NAFTA and slap import duties on Mexican-made goods.
Regular gas is scheduled to sell for 15.99 pesos per liter in Mexico City (about US$ 2.85 per gallon), though prices will vary across the country.