Mexico Government Addresses Gasoline Price Hikes with Voluntary Agreements

The Increase without gasoline control worries all of Mexico, given this situation, the government has decided to take letters with gas stations urgently, with Measures that avoid overpricing and speculation.

According to a study, made by the Federal Consumer Attorney (Profeco), More than 37 gas stations In different entities of the country, They excessively rose their prices. So much so, They reached up to 27 pesos per liter when the average was between 22 and 23 pesos.

Why this problem? According to experts, gas stations speculate with the price to increase their profits, but this harms and is an abuse for the consumer. Due to these increases, the government represented by President Sheinbaum, took urgent measures to avoid these abuses against final consumers.

Understanding the Problem and Proposed Solution

The measure presented by the president, is create a voluntary agreement between gas stations and distributors. The idea is not to restrict and regulate with sanctions, but Define a reasonable maximum price at the cost of gasoline. Without harming competition or suffocating entrepreneurs, but at the same time that it does not affect the consumer economy. It is a measure similar to the model implemented to regulate the price of the basic basket, with negotiations with stores in order to stabilize the cost of basic products.

Key Components of the Agreement

The agreement must include a Clear and transparent breakdown of costs that make up the final price of fuel, such as:

  • Pemex’s base price.
  • The cost of import gasoline.
  • Special taxes, such as the Special Tax on Production and Services (IEPS), which directly impacts the cost to the consumer.
  • The Value Added Tax (VAT).
  • The profits for both Pemex and distributors.
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In this way, it is sought to ensure that the final price is fair and reflects real costs precisely, without excessive profit margins. In turn, it will be a control over the use of fuels of doubtful origin that affect the oil market. Likewise, the Special Tax on Production and Services (IEPS) will continue to be a tool to compensate for fluctuations with international oil prices, but will not be used to finance excessive gas stations.

Collaboration for a Fair Price

It remains to wait if these measures will work in the short term. For her part, the president showed confidence in this system that It will be a voluntary pact. While, the agency that groups the country’s gas entrepreneurs has shown a willingness to participate in an open dialogue, but also requested that the authorities Consider the characteristics of each station such as geographical location, sales volume and other variables that affect the operational cost.

This model has worked for the basic basket and is now expected to do the same for gasoline, by implementing maximum volunteer prices, the service stations would avoid severe sanctions, closures and constant inspections. This approach seeks a balance between a fair gain for distributors and reasonable prices for consumers. The government expects this voluntary agreement not only to stabilize gasoline prices, but also foster a more fair and equitable environment in the commercialization of fuels. When transparent costs and reduce excessive gain margins, it seeks to protect consumers and guarantee a sustainable gasoline supply throughout the country.

While the challenge is complex, open dialogue and transparency in costs are key elements to achieve a national consensus that benefits everyone.

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