Gasoline Price Cap to Be Renewed

President Claudia Sheinbaum announced that Mexico will renew its voluntary agreement with gasoline retailers this August to keep the price of regular gasoline at MX$24/L (US$1.29/L). She also stated that a plan to reduce administrative procedures for gasoline retailers is expected to be signed this month.

Sheinbaum credited the decline in inflation to the voluntary agreement with gasoline retailers and the Package Against Inflation and Shortage (PACIC). The agreement was initially signed on Feb. 28, 2025, for a six-month period , and it will be evaluated for renewal this month.

The agreement, known as the National Policy to Promote the Stabilization of the Price of Gasoline for the Benefit of the People of Mexico, was signed by representatives from SENER, CRE, and a group of independent gasoline retailers. It aims to provide certainty to consumers and stabilize the market amid international volatility. It is intended to curb abrupt price increases caused by external factors such as rising international oil prices, exchange rates, and logistical costs. The agreement is voluntary and does not impose legal obligations on the signing parties.

The agreement also included fiscal incentives for gasoline retailers. Jorge Mijares, President, Onexpo Nacional, an association of gasoline retailers, said at the time that working groups would continue to meet to periodically adjust and evaluate the agreement. Critics of the pact noted that it did not account for differences in logistical costs between regions, which could affect the profitability of some service stations and potentially encourage illegal practices.