Although PEMEX benefitted from the increase of crude oil prices, this also translated to higher spending on the import of fuels, as the NOC spent 83.3 percent more on fuel imports in 1Q22 compared to 1Q21.
Between January and March of 2022, the value of the NOC’s petroleum product imports, most of which is gasoline, stood US$5 billion. This represented a US$2 billion increase compared to the same period last year, according to PEMEX’s data. The conflict between Russia and Ukraine has had a strong effect on fuel prices, causing them to skyrocket.
The state-owned company indicated that in 1Q22, the average reference price was 58.8 percent higher than that of 1Q21. “This happened due to the price increase in crude oil and a growing demand. During the period, gasoline inventories in the US market remained aligned with the average of the last five years,” its report reads.
Diesel prices increased by 70.9 percent, as PEMEX pointed toward to the global recovery of demand for diesel, particularly in the C&I environment. During 1Q22, PEMEX imported 544.8Mb/d of refined products, 58 percent of which gasoline, 15 percent diesel and another 15 percent to LPG.
The NOC’s refined product imports increased in the first quarter by 17.7 percent compared to 1Q21. Gasoline averaged in 316Mb/d, 9.8 percent more, while that of diesel was 83.6Mb/d, a decrease of 4.3 percent.
Despite these higher prices, PEMEX reported its best financial quarterly results in 20 years this week, with a net profit of MX$122,494 million (US$6 billion) in 1Q22, which stands in sharp contrast with the net loss of MX$37,358 million (around US$2 billion) of 1Q21.
This is the largest net profit that the state-owned company has achieved since 1Q02, the last available registry of the company on the stock exchange. Octavio Romero Oropeza, Director General, PEMEX pointed toward high oil prices and increased demand for oil and its byproducts. Moreover, the recent acquisition of the Deer Park Refinery in Texas already generated US$ 195 million for the NOC.
The NOC reported an income of MX$506 billion (around US$25 billion) between Jan. and March of 2022, representing a 59.6 percent increase compared to the same period in 2021. The results are propelled by a recovery in the value of crude oil. Furthermore, PEMEX registered an operational performance of MX$184 billion, a 65.6 percent growth in comparison with the performance registered in 1Q21.
Additionally, in Mexico the price of fuel was mitigated by the fiscal incentives applied to the tax on diesel and gasoline which the government stopped charging.