Mexico Connect
Forums  > General > General Forum


Rolly


Jan 4, 2015, 9:42 AM

Post #1 of 5 (2665 views)

Shortcut

Gas goes up 1.9%, not 3%

Can't Post | Private Reply
"The finance secretariat advised in a prepared statement that prices now in effect — the December prices plus 1.9% — would be maintained throughout the year. The news release also confirmed that the new prices are actually maximums — individual Pemex franchises will have the freedom to adjust their prices downwards to be more competitive if they wish. Liquid propane also went up 1.9% yesterday, and that price as well will not be subject to any change in 2015."

Read more here: http://mexiconewsdaily.com/...ampaign=Email+Jan.+3

Rolly Pirate



Aaron+

Jan 6, 2015, 10:46 AM

Post #2 of 5 (2573 views)

Shortcut

Re: [Rolly] Gas goes up 1.9%, not 3%

Can't Post | Private Reply
Rarely is everything simple here.

In late 2014, Hacienda did originally announce a 3% increase in PEMEX gasoline prices. There were even two dates published as being the dates for the increase, Jan. 1 or Jan. 15. (Neither date on a first Saturday, the days in 2014 for monthly price increases.) Subsequently, the increase was implemented at 1.9% Jan. 1, with the 3% explained away as being the expected inflation, and that gasoline prices would be adjusted further. Then a series of contradictory statements came from the head of Hacienda, Luis Videgaray, as to whether there would be or would not be further "gasolinazos" (big jumps in the prices) in 2015. The constant promise was no longer will there be monthly first Saturday small creeping increases. The latest statement I read said that there was a new law published in December that is the final (?) word. As if any one law is ever the final word here. However, I also heard (on TV) that gasoline prices may yet vary in accordance with international (read: U.S.) prices, since Mexico imports a bit over half of its gasoline from the USA; by that logic, Hacienda should have announced a reduction in gasoline prices -- ha ha.

At least in the Yucatán, a promise of holding the new line on LP does not concern the 45% or so of the population that is impoverished. Such prices were already too high to be affordable, hence reliance on wood or anything else that can be burnt.

Meanwhile, let no one hold their breath waiting for individual PEMEX franchises to offer gasoline at less expensive rates than the official "maximum" tariffs, although it might conceivably happen if a corporate franchise holder wanted to drive competitors out of a market. That would be most unusual, as dividing up markets is the usual corporate practice here rather than competition.

By the way, Sr. Videgaray was the same gentleman who, Dec. 3, 2012, assured Mexico that, if recurrent crises were to be avoided (in the sense that that is the promise of the EPN govt.), the living standards of Mexicans would improve.


fpeg

Jan 6, 2015, 6:55 PM

Post #3 of 5 (2538 views)

Shortcut

Re: [Aaron+] Gas goes up 1.9%, not 3%

Can't Post | Private Reply
The present prices of gas at the frontera are 8.8 magna and 10.1 premium


chinagringo


Jan 6, 2015, 7:52 PM

Post #4 of 5 (2531 views)

Shortcut

Re: [Rolly] Gas goes up 1.9%, not 3%

Can't Post | Private Reply
So Rolly:

How does this new policy at Pemex fit in with the tried and true Mexican theory of retail that if one's sales volume goes down, then you raise prices to offset?
Regards,
Neil
Albuquerque, NM



Moisheh

Jan 11, 2015, 10:45 AM

Post #5 of 5 (2468 views)

Shortcut

Re: [chinagringo] Gas goes up 1.9%, not 3%

Can't Post | Private Reply
I read somewhere that Pemex asked the station owners to reduce their retail price. But they refused as Pemex would not lower their wholesale price. I think they all need to study business 101.
 
 
Search for (advanced search) Powered by Gossamer Forum v.1.2.4