Grupo Solmar Cuts LP Gas Use Nearly 50% in Los Cabos

Grupo Solmar’s reduction of LP gas consumption at its Los Cabos hotels underscores how energy-efficiency technologies and monitoring systems are becoming operational priorities for Mexico’s hospitality sector, where fuel costs represent a significant share of expenses. The initiative comes as the Comisión Nacional de Energía removes LP gas price caps for certain commercial segments, a regulatory shift that could increase price volatility for businesses.

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Grupo Solmar reported a nearly 50% reduction in liquefied petroleum (LP) gas consumption at its hotels in Los Cabos, Baja California Sur, following several energy efficiency measures implemented over the past four years. The hospitality company said the decline occurred between 2021 and 2025 across the six hotels it operates in the destination, where it has maintained operations since 1974. According to company data, LP gas consumption dropped from 1,345,237 liters in 2021 to 691,617 liters in 2025.

The reduction was largely driven by the installation of Multistack systems, which capture heat generated by cooling compressors and reuse it to heat water used in guest rooms, swimming pools and service areas. Grupo Solmar said the technology allows properties to reduce both energy consumption and environmental impact.

Mauricio Salicrup, operations director, Grupo Solmar, said the technology helps mitigate emissions while lowering operating costs. “Our Multistack systems help us mitigate our carbon footprint, reduce energy bills — which can represent between 5% and 20% of a hotel’s operating costs — and create greater awareness about the responsible use of energy resources,” Salicrup said.

The company added that the improvements have allowed several of its properties to reach a stable efficiency threshold, meaning energy consumption remains at minimal levels regardless of hotel occupancy rates.

Energy Monitoring Systems Improvements 

In January 2024, Grupo Solmar also created an internal Energy Committee at each property to identify opportunities to further reduce consumption and emissions. The committees oversee monitoring programs that track the operation and performance of equipment throughout the hotels.

Among the measures introduced are hour meters, or horometers, which record the total operating time of mechanical equipment such as pump systems. The data allows engineers to determine how long systems operate, how much energy they consume and what operational adjustments could improve efficiency.

The company also installed meters that monitor water, electricity and LP gas consumption in machine rooms across all properties. These systems provide continuous monitoring of energy usage.

“We know that what is not measured cannot be improved, so we installed water, electricity and LP gas meters in all machine rooms. They provide detailed information on equipment performance and allow us to detect anomalies in energy consumption in real time,” Salicrup said.

Energy efficiency initiatives are particularly relevant in Baja California Sur, where LP gas prices are higher than in many other regions of Mexico due to transportation and supply logistics.

CNE Removes Price Caps on LP Gas

Grupo Solmar’s achievements in LP gas efficiency come just over a month after the National Energy Commission (CNE) eliminated the methodology that established price caps on LP gas for certain segments of the market.

The CNE’s decision, published in the Official Journal of the Federation (DOF) on Jan. 21, 2026, annuls the A/023/2022 agreement, originally issued under the now-defunct Energy Regulatory Commission (CRE), which required the weekly publication of maximum LP gas prices for various sales modalities. The mechanism was initially adopted to protect consumers amid volatile energy costs, but it faced growing opposition from industry stakeholders who argued it undermined commercial viability.

Under the new regulatory order, the price cap mechanism no longer applies to certain commercial activities, including the sale and distribution of LP gas through bodegas (storage and retail warehouses), specific service stations and multimodal service stations.

The legal change was prompted by successful amparos (judicial injunctions) filed by LP gas permit holders, who secured court rulings invalidating the methodology used to set price ceilings. The CNE clarified that the elimination of the price cap methodology resulted directly from these judicial decisions, rather than from a unilateral policy decision.

Despite the removal of the price cap framework in these segments, LP gas sold for direct domestic consumption — particularly in cylinders and deliveries via tanker trucks to household customers — remains subject to regulated price limits. The regulator emphasized that maintaining protection for residential consumers is essential, given that LP gas remains a primary energy source for a large majority of Mexican households for cooking, heating and other daily uses.

The regulatory adjustment is expected to have complex implications across the LPG market. Proponents of eliminating price ceilings argue that price controls can distort market dynamics, discourage investment and lead to supply shortages when distributor costs rise faster than regulated prices.

Industry associations such as the Ibero-American Association of Liquefied Petroleum Gas (AIGLP) previously warned that price controls were deterring investment and threatening supply stability, noting that distributors were operating with margins too narrow to cover basic operational and safety costs.

However, the removal of caps also raises concerns about potential price volatility and inflationary pressure on households, particularly among low-income consumers, for whom LP gas represents a significant share of monthly energy expenses.

Historically, price controls were intended to mitigate rapid increases linked to international commodity movements, exchange-rate fluctuations and distribution costs. Before the regulatory change, LP gas prices under the cap system varied by region but often ranged between MX$17 (US$0.96) and MX$22 (US$1.24) per kilogram, depending on local distribution and transportation factors.