Thursday December 14 2017

Posted by Tomas on October 31, 2017
  • Drivers can now find fuel at regular intervals along Highway 1.
    Drivers can now find fuel at regular intervals along Highway 1.
  • Gasoline Prices in Mexico to rise again
    Gasoline Prices in Mexico to rise again
  • Pemex in central Pescadero
    Pemex in central Pescadero

As of Monday, October 30, 2017 the third phase of gradual flexibilization of fuels in the country was completed, which on this occasion includes the states of Baja California Sur, Sinaloa and Durango, while within a month it will be the City of Mexico and other central states. Fuel prices are expected to rise with the removal of restriction of the maximum price, previously set by SAT. Each station is now free to set the price of fuel based on supply and demand. Prices in distant rural areas are expected to skyrocket, where the cost of delivery will be significant. 

The first phase, which began on March 30, incorporated Baja California and Sonora; Chihuahua, Coahuila, Nuevo Leon, Tamaulipas and the municipality of Gómez Palacio, Durango, on June 15. The fourth phase will begin on November 30 and will enter the states of Aguascalientes, Mexico City, Colima, Chiapas, State of Mexico, Guanajuato, Guerrero, Hidalgo, Jalisco, Michoacan, Morelos, Nayarit, Puebla, Queretaro, San Luis Potosi, Oaxaca , Tabasco, Tlaxcala, Veracruz and Zacatecas. And as of December 30, 2017, in the fifth stage, entities such as Campeche, Quintana Roo and Yucatán will be included.

The governing body of the Energy Regulatory Commission (CRE) approved in December 2016 the timetable for the flexibilization of gasoline and diesel markets, which considers five stages of regional opening that will allow the free fluctuation of prices throughout the country as long this year. This process began in border states of the north of the country, being the zone with greater connectivity to diverse sources of supply of gasoline and diesel. This process of price flexibility establishes five stages: the first two in the north of the Mexican Republic, the third and fourth in the center and west, while the latter covers the Yucatan peninsula.

In the past several months the southern state has seen a few Pemex stations converted to new brand stations as the liberalization plan had anticipated. However, prices have not become competative as the plan and consumers had hoped for. In fact, prices at two stations surveyed in La Paz today had increased factionally over the prices shown below. Foriegn oil companies see much of Mexico as a 'premium market' where distribution costs can be significantly higher than US or Canadian station routes and with the competative stations being few and far between it is wishful thinking that the prices will fall in Baja California Sur. Residents of Baja California may see a benefit when their turn comes at the end of November, as competition may provide customers a break. But most of us are aware, oil companies are not know for being magnanimous. 

Prices are likely to show increases the further the station is from the points of distribution. In Baja California Sur there is only one distribution point, La Paz. In the most northern part of the state fuel is sometimes distributed from Rosarito's tank farm and importation point. There are no fuel refining facilities on the west coast of Mexico (or Baja). Almost all of our gasoline and diesel are imported from facilities in Southern California. 

 

Fuel Prices in Baja California Sur as of the Date of Liberalization Price per Liter/Pesos In Dollars @ 19.4:1 Dollars per Gallon
Regular Gasoline $16.17 $0.83 $3.16

Premium Gasoline

$17.85

$0.92 $3.48
Diesel $16.99 $0.88 $3.31
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