Gasoline & Diesel Prices Rise in Mexico & Baja - The End of Subsidies in 2013
Updated June 01, 2013 - The next scheduled increase in fuel prices will be July 1, 2013,
Due to the rise in the dollar vs: the pesos in May, fuel prices actually fell 4.5% for American visitors.
Unlike gas prices elsewhere in North America, prices are set nationwide, with the exception of certain regions, including the Baja California border areas, where fuel may be slightly higher.
In addition, gasoline and diesel prices are slightly less expensive in Baja than the rest of Mexico as the 11% IVA is applied, where on the mainland a 16% IVA is added.
For decades the price of gas and diesel has been subsidized by the Mexican government. In 2012 the subsidy cost over 1.6% of the GNP of Mexico and many are calling for the necessary end to the payments to PEMEX. (pronounced "Pay-mex") Economic analyst point to the dramatic affect on inflation that removing the subsidy would cause, with fuel prices rising more than 28% in one year.
Other Baja Driving Requirements |
Editor's Note:1) As of January 1, 2012 Proof of liability insurance is required in Baja California 2) As of January 1, 2011 Talking on a cell phone while driving is illegal in both Baja California and Baja California Sur it is a +$800 pesos fine in BCS. 3) Use of Seatbelts is rquired in both states. 4) Coming October 1, 2013, proof of liability insurance will be required in Baja California Sur. This law was ratified May 21, 2012. The fine will be about $2600 pesos. Click here to obtain Mexican Auto Insurance from one of our reputable providers |
In light of Mexico's dwindling oil reserves, Pemex contends that Mexico is simply running out of oil. In a recent letter to the lower house of the Mexican Congress, Pemex said the country has only 5 years of proven oil reserves remaining. In 2011 Mexico's gasoline imports rose by a double digit percentage. By 2015 Mexico may no longer have the title of "Oil Export Nation" and since Mexico sells a vast majority of it's current export supply to the US. Stateside prices will rise even further when Mexico closes the valve.
Also see Problems with Mexican Diesel in California Emmissions Trucks
There are no refining facilities on the west coast of Mexico to produce gasoline. In the late 1930's, when Mexico nationalized the oil production business, a bone was thrown to the U.S. oil companies in that no gasoline refining would be done in Mexico. In June of 2010 construction began on the first new refinery in Mexico in more than 30 years. The facility would begin reducing the need to export crude oil then re-import it as gasoline.
In 2013 there will be a series of monthly prices increases that will be 9 to 11 centavos per liter. By the end of the year (2013) Mexico officials say they need to get the price of fuel 'closer to international fuel costs. Under this price increase structure the Magna gas will cost more than the premium gas in December of 2013. The price for filling the average gas tank will rise by about $130 pesos per tankful.
PEMEX fuel prices for gasoline and diesel in Baja California as of April 06, 2013 are in the following table. The prices have been converted to U.S. gallons so you can make the comparison easily. The price of Gas is supposed to be the same throughout all of Mexico but the government has chosen to allow for higher prices in some northern border areas of Mexico because of the Americans that are coming over the border to purchase gasoline and diesel at a very large discount relative to the U.S. prices.
Fuel prices in Baja are slightly less than the rest of Mexico. IVA (value added tax) is 11% in Baja and 16% on the mainland.
Price of Gasoline & Diesel in Baja as of 06-01-13 (Exchange 12.80:1) |
|||||
Mainland |
Baja California & |
Average |
California~ |
||
Per Liter |
Per Liter |
Per Gallon |
Per Gallon |
Per Gallon |
|
Magna (regular unleaded) - Verde |
$11.47 |
$11.16 |
$3.30 |
$3.60 |
$3.99 |
Premium - Rojo |
$12.03 |
$11.64 |
$3.44 |
$3.93 |
$4.09 |
Diesel |
$11.83 |
$11.56 |
$3.41 |
$3.87 |
$4.06 |
* calculated at the rate of 12.0 pesos per dollar
~ US Prices from AAA 02/11/13
Although prices are set nationwide what you actually PAY for gas may vary, not on the price, but by the size of the liter you receive. Arguing the point with an attendant by the way will usually prove fruitless. Taken to an extreme, an owner once produced a measured 20 liter can and very slowly put in exactly 20 liters. The old trick here was to drill holes in the pump impeller. The pump delivers accurate slow dispensing but when the pump runs full speed a relative fraction of the gas is actually delivered. I have been told that today, with electronic pumps, the process of 'chiseling' is even easier. I once was able to put an alleged 24 liters in a 20 liter measured can, that is a 20% shortfall!
In January a new Director Of PROFECO was installed in Baja California Sur. One of his stated mandates in taking office was to take on the problem of 'short liters' being sold by so many stations. Profeco is Mexico's consumer protection department and also in charge of what we up north call weights and measures. If you feel you have been shorted report the station online, email or telephone. The contact information is here: PROFECO Baja California or Baja California Sur)
Remember tipping your Pump Jockey is customary in Mexico. $5-10 Pesos makes their day! (less than a dollar)
Just so you know the Magna which is the regular gas is green (verde) and the Premium is red (rojo) and many people just say the color and fill it up (llenarlo or lleno por favor) please! 
Tomas