Mexico’s Fuel Imports Decreased in November
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Mexico’s Fuel Imports Decreased in November

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Perla Velasco By Perla Velasco | Journalist & Industry Analyst - Tue, 01/17/2023 - 08:08

In November 2022, PEMEX imported 303.40Mb of gasoline, 25.71% less than in October of that year. Similarly, diesel imports decreased by 14%, as imports dropped from 171Mb in October to 147Mb in November. This represents the second lowest import number in 2022, following February when the NOC imported 295.8Mb in total.

At the same time, PEMEX’s refining increased by 15 percent in November 2022 compared to October; the NOC produced 708.6Mb/d in October, while the next month it produced 814.5Mb/d. Despite the increase, the government’s target for 2022 production was 1.2MMb/d, so the NOC fell 31 percent short with an average of 814.52Mb/d.

The rehabilitation of the National Refining System (SNR) has so far cost the administration MX$45 billion (US$2.39 billion). According to PEMEX, its six refineries Salina Cruz, Minatitlan, Tula, Salamanca, Madero and Cadereyta were producing at a 38% capacity three years ago. Still, the use of the installed refining capacity is at one of its lowest points since 2012. The SNR produced fuels at 77.7% capacity in 2012 but by 2018 it was only using 37.9%. Furthermore, according to El Economista, the SNR was producing at 49.7% of its capacity in November 2022.

Accordingly, the income coming from oil exports decreased by 3.2% from September to October 2022, as the figure dropped from US$2.52 billion to US$2.44 billion.

One of PEMEX’s main strategies for its 2023-2027 Business Plan is to further strengthen the SNR and reduce its imports of refined petroleum products. “Although significant fuel imports need to continue, improvements in the refining process mean that purchases of merchandise for resale will not increase significantly,” reports the state company in the plan.

Furthermore, PEMEX reported lower profit from fuels sales in November 2022 despite higher demand and sales. Although PEMEX sold a total of 671.8Mb/d, 24Mb/d more than the previous month, the company reported an 11.2 percent profit decrease. In October 2022, PEMEX gained MX$53.04 billion (US$2.73 billion) from fuel sales, while the following month this figure dropped to MX$47.07 billion (US$2.42 billion). According to experts, the decrease in income corresponds to lower demand for oil and gas.

Photo by:   Twitter @Pemex

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