Mexico Gas Stations Face Closure Amid New Gas Price Measure

The fear of gas price increases, commonly known as “gasolinazos,” has been a significant concern for many Mexicans. However, with the government’s recent establishment of a maximum price of $24 pesos per liter of gasoline, the tables have turned, and now gas stations are the ones facing uncertainty.

## Will it be goodbye to gasoline? Thus the service stations could be affected

Recently, President Sheinbaum announced that there won’t be a gasoline price increase in 2025, with the goal of shielding the economy from price fluctuations. Although this measure benefits consumers, it’s essential to consider its impact on gas stations. According to Petro Intelligence, a staggering 46% of the 10,607 gas stations analyzed in the country operate with margins greater than $2 pesos per liter in fuel sales.

This means that with a price cap, their profits could be at financial risk. While it’s not a certainty, it’s a possibility that forces entrepreneurs in the area to take measures and plan for the future. Many experts warn that a price cap would limit business and could lead to negative effects on service quality, infrastructure, and even an increase in the illegal fuel market.

## Is there a possibility of gas stations?

Petro Intelligence’s study suggests that around 4,827 stations will face economic difficulties with a maximum price. The main affected states would be Nuevo León, Jalisco, and Veracruz, followed by Quintana Roo, Yucatán, Oaxaca, and Michoacán. The issue is that most gas stations are independent, so a profit margin of less than $2 pesos per liter wouldn’t be enough to cover costs like maintenance, salaries, and security.

This implies that only stations with margins smaller than $2 pesos will survive, which accounts for about 54% of the country. It’s a serious problem for gasoline supply, as more than half of the stations might struggle to stay afloat. Although the agreement is voluntary, the Federal Consumer Prosecutor’s Office (Profeco) has established pressure mechanisms, including inspections and public stigma for non-compliant stations.

## The solution is balance, can government and gas stations achieve an agreement?

Experts caution that the measure could have unintended consequences, such as encouraging illegal trade, which would put cars and profits at risk of falling into criminal networks. The solution, according to guild representatives, lies in dialogue with the government. They argue that many gas stations operate in areas with high logistics costs, justifying higher margins.

They propose focused subsidies or tax adjustments, such as IEPS, to compensate for losses without affecting public prices. While the government insists that this voluntary price control strategy is a temporary measure to stabilize the family economy, it has not specified deadlines or review mechanisms. Ultimately, finding a balance between controlling prices and ensuring the sustainability of gas stations is crucial to avoid negative consequences for both consumers and entrepreneurs.

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