LP Gas Price Continues to Decrease in Mexico
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LP Gas Price Continues to Decrease in Mexico

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Karin Dilge By Karin Dilge | Journalist and Industry Analyst - Tue, 11/22/2022 - 12:08

The federal government said it has been three consecutive weeks of decreasing liquified petroleum (LP) gas prices in the country.  

The prices show the newly applied methodology by the regulator to safeguard affordable LP gas prices for people across Mexico who rely on gas for cooking. Moreover, CRE reported that the publication of the maximum applicable price of LP gas for the final user was established in line with the agreement A/024/2021. The agreement, issued by the Ministry of Energy, has the objective of protecting the interests of the final users.

Next week, the maximum price of this fuel in Mexico City is expected to be at MX$10.96/kg (US$0.56/kg) and at MX20.30/kg (US$1.04/kg). The highest price for this fuel is found in the municipalities of Loreto and Mulege in Baja California, where it reaches MX$24.90/kg (US$1.28/kg). 

Furthermore, according to the list published of maximum prices by the CRE, the price in Mexico City will decrease from MX$20.35 to MX$20.30/kg with the value-added tax (IVA) included. In Tijuana, the price is diminishing from MX$20.67 to MX$20.6/kg, the same as last week. Meanwhile, in Puebla, the price is declining from MX$20.42 to MX$20.37/kg with IVA. 

The Federal Consumer Agency (PROFECO) assured that it has been thanks to the policy implemented by the federal government that the price of this fuel continues to be lower than the international standard. 

Mexico is among the OECD countries with the lowest energy inflation according to its finance ministry. Nevertheless, the International Monetary Fund (IMF) has stated measures to subsidize fuels that also include diesel and gasoline may be both costly and ineffective and that governments should be more cautious regarding how they grant support to their population to soften the blow of rising food and energy prices. Paolo Mauro, the Director of Fiscal Affairs, IMF, said that keeping the cost of gasoline artificially low is an inefficient way to help people with scarce resources and deprives other sectors affected by the pandemic of much-needed support.

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