MEXICO CITY – Mexico increased gasoline prices Wednesday for the third time this month, raising concerns that a push by the government to remove
expensive fuel subsidies could drive inflation higher.
Mexico's standard Magna-grade gasoline was selling at the pump for 7.33 pesos per liter, one centavo higher than a day earlier, Mexico's association
of gasoline station owners said on its website.
The government controls gasoline prices in Mexico, and has been quickening the pace of price hikes in recent months to gradually reduce a subsidy
that is expected to cost public coffers nearly $20 billion this year. The subsidies are aimed to shield consumers from pricey fuel imports.
The price of standard gasoline has jumped 9 centavos so far in August. That is the biggest monthly increase in at least 2 1/2 years, according to data
from state-run oil company Pemex.
“The worry about these kinds of increases arises when the hikes keep getting bigger,” said Juan Trevino, an economist at HSBC in Mexico City.
Mexico's inflation is already running at its highest in more than three years, with consumer prices up 5.39 percent in the 12 months through July.
At the same time, a gradual reduction in the subsidy is favorable for long term public finances, Trevino said.
A lack of domestic refining capacity means Mexico must import about 40 percent of its gasoline, despite being the world's No. 6 producer of crude oil.
Yet government subsidies mean fuel prices at Mexican pumps are far below U.S. levels.
The government has given mixed messages on its subsidy policy. The finance ministry has promised not to alter the subsidy program, while the energy
ministry has said the goal is to get Mexican gasoline prices closer to U.S. prices at the pump.
Officials at the finance ministry were not immediately available for comment.
(Reporting by Jason Lange)
Not exactly on point...
tsgarcia69 - 8-20-2008 at 04:42 PM
...but I was just reading in a Mexican newspaper the other day that Mexico's retail same store sales in July had dropped 10% from July, 2007. That is
a huge drop off in retail sales, and may be a harbinger of Mexico slipping into a deep recession, even deeper that in the US.David K - 8-20-2008 at 05:05 PM
I just filled up in Vista, CA (ARCO) at $3.799/ gal. today. It has come down a dollar a gallon since the president's announcement about lifting the
executive ban on off-shore drilling. That woke up the foreign suppliers!!
So, Mexico's Pemex price is about a dollar a gallon less expensive than here, with the new raise...Bob and Susan - 8-20-2008 at 05:35 PM
so how much is diesel up there these daysDavid K - 8-20-2008 at 05:41 PM
Quote:
Originally posted by Bob and Susan
so how much is diesel up there these days
I didn't look to0 closely at nearby stations (that Arco isn't diesel), but I recall all in the high 4s to low 5s per gallon... Much higher than
Premium gasoline, which is down to $4.05+fdt - 8-20-2008 at 07:32 PM
Quote:
Originally posted by SUNDOG
Mexico government raises gasoline prices again
1 mexican centavo, that is 1/10 of a US cent.Hook - 8-20-2008 at 09:27 PM
I just have to relate my experiences over the last two months while awaiting, and then picking up our trailer that we now have in San Carlos.
We witnessed diesel as high as 5.03 somewhere below Moab on US 191 and as low as 4.13 at a Native American owned Chevron in Kayenta.
The lowest gasoline we saw was 3.53 between Des Moines, Iowa and Omaha, Nebraska...........not counting the independent station in the middle of the
corn fields of Nebraska selling E-85 for 3.18/gallon!
In Denver, where we spent most of our waiting time, you need only drive about 10 miles east of Denver proper and gas and diesel dropped about 30 cents
per gallon.
I found no sense to the wildly varying prices where we went on our travel.
On the mainland this week, we paid 6.1 pesos/liter and 7.3 for Magna Sin.
All prices were seen between August 10-20.tripledigitken - 8-20-2008 at 09:32 PM
East county San Diego today I saw $4.39 for diesel.
KenDavid A. - 8-21-2008 at 06:07 AM
San Bernardino Thrifty gas station, Diesel 3.99 and regular 3.45 per gallon. We are heading in the right direction.
[Edited on 8-21-2008 by David A.]
Who cares?
BMG - 8-21-2008 at 07:10 AM
How can you be worried about gas price increases when Modelo just announced a price increaseHook - 8-21-2008 at 08:13 AM
I hope this lays to rest the unfounded notion by some (including Bernanke and the Bush Administration) that speculation in the oil markets wasnt a
large part of the spike we saw in prices. There is simply no way that the miniscule demand erosion or the opening of the salt domes explains the quick
drop in prices.
Whether anything can or should be done about it is another topic.............k-rico - 8-21-2008 at 08:43 AM
Quote:
Originally posted by fdt
Quote:
Originally posted by SUNDOG
Mexico government raises gasoline prices again
1 mexican centavo, that is 1/10 of a US cent.
10 litros costs a penny more? No, tell me it's not true. Damn, that's going to raise havoc! The Mexican economy is doomed.
The local OXXO has raised the price of a 12 pack of Tecate from 104 to 106 pesos. Now that's a problem.Hook - 8-21-2008 at 08:48 AM
You're buying beer at an OXXO?
Must be very convenient or very cold beer............flyfishinPam - 8-21-2008 at 09:23 AM
Quote:
Originally posted by fdt
Quote:
Originally posted by SUNDOG
Mexico government raises gasoline prices again
1 mexican centavo, that is 1/10 of a US cent.
nope, its one cent USCaboRon - 8-21-2008 at 09:32 AM
Quote:
Originally posted by Hook
You're buying beer at an OXXO?
Must be very convenient or very cold beer............
Just a note: OXXO has good coolers = cold beer !CaboRon - 8-21-2008 at 09:36 AM
Quote:
Originally posted by flyfishinPam
Quote:
Originally posted by fdt
Quote:
Originally posted by SUNDOG
Mexico government raises gasoline prices again
1 mexican centavo, that is 1/10 of a US cent.
nope, its one cent US
one centavo = one one-hundreth (1/100) of a peso
one centavo = one one-thousandth (1/1,000) of a us dollarDiver - 8-21-2008 at 09:44 AM
Don't argue with a Mexican over centavos ! k-rico - 8-21-2008 at 10:38 AM
Quote:
Originally posted by Hook
You're buying beer at an OXXO?
Must be very convenient or very cold beer............
Both, but you're right. The Calimax 4 more blocks away has it for 90+ pesos, not exactly sure. But when I'm thirsty, speed is of the essence!
I could even save more at the local Pacifico deposito but I like Tecate better and I like cans better. I crush them with a machine I made and give
them to the gardener, who recycles them.
