Mexico’s gasoline, diesel prices hit record highs

Mexico's average retail prices for gasoline and diesel have increased to all-time highs, driven by relatively lower tax deductions and higher international prices.

Retail prices for regular gasoline in Mexico reached Ps23.73/l ($4.95/USG) on 25 June, up by 8pc from a year earlier and the highest since Argus in July 2018 started tracking prices reported by retailers to the energy regulatory commission (CRE).

Regular gasoline's average retail price surpassed the Ps23/l barrier on 16 February for the first time.

Similarly, national average retail prices for diesel reached an all-time high Ps25.38/l on 25 June, up by 7pc from a year earlier, the same data show.

The hike was in part supported by a combination of lower tax deductions, higher international prices and a weaker Mexican peso.

The excise tax deduction for regular gasoline was set at Ps0.3621/l for the 22-28 June week, down from a Ps1.2845/l tax deduction in the same week of 2023.

Meanwhile, diesel subsidies were 15pc lower for the 22-28 June week year over year.

At the same time, delivered regular gasoline prices to Mexico's east coast from the US Gulf coast — which provides most of Mexico's imports — rose by 5pc to $2.34/USG on 25 June, up from $2.22/USG a year earlier, according to Argus assessments.

Delivered diesel prices to Mexico's east coast from the US Gulf coast rose by 10pc to $2.50/USG on 25 June year-over-year.

Furthermore, the Mexican peso's post-election depreciation has made fuel imports more expensive.

The exchange rate stood at Ps18.13/$1 on 25 June, up by 5pc from Ps17.14/$1 a year earlier, according to Mexico's central bank Banxico.

By Antonio Gozain