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Gasoline prices in Mexico no longer determined by feds, but by supply and demand

Mexico City, Mexico — As of November 30, the price of gasoline in Mexico will no longer be determined by the federation, but instead, by supply and demand.

Beginning today, the price of gasoline will be released throughout the country after the Energy Regulatory Commission (CRE) decided to advance the new regulation to the remainder of the states. This means maximum fuel prices will no longer be published in the Official Gazette of the Federation but instead, gas stations will now do so directly, as reported by the Ministry of Finance and Public Credit (SHCP).

At the end of 2016, the CRE approved the timetable for the flexibilization of the gasoline and diesel markets, in which it considered various stages of opening the free fluctuation of prices throughout the 2017 year.

The first stage came into force on March 30 in Baja California and Sonora. The second began on June 15 in Chihuahua, Coahuila, Nuevo León, Tamaulipas and the municipality of Gómez Palacio, Durango, while the third phase began on October 30 in Baja California Sur, Sinaloa and the rest of Durango.

The fourth stage is set for November 30 in the entities of the center of the country, together with those of the Yucatan Peninsula.

Thus, Aguascalientes, Colima, Chiapas, Guanajuato, Guerrero, Hidalgo, Jalisco, Mexico, Michoacán, Morelos, Nayarit, Oaxaca, Puebla, Queretaro, San Luis Potosi, Tabasco, Tlaxcala, Veracruz, Zacatecas and Mexico City, together with Campeche , Quintana Roo and Yucatán, will be added to the entities in the north of the country .

With the new price structure, Pemex officials say that a drastic increase is not expected, however prices are not expected to decrease or become cheaper.

This initiative was included in the energy reform, which was launched in January this year in stages by region from north to south of the country.

Today is the final phase and Campeche, Quintana Roo, Yucatan, Mexico City, Aguascalientes, Puebla, Nayarit, among others, go to the list of states with liberalized prices, announced last week, the Energy Regulatory Commission (CRE) .

In the capital, for example, gasoline is averaged at 19 pesos per liter for premium and between 16 and 18 pesos for Magna, so it is possible that throughout the day there are variations in terms of cents.

From this point forward, the prices of fuel, whether Magna, Premium or Diesel, will not be determined by the federal government, specifically by the Ministry of Finance, but by the market under the law of supply and demand.

The federal government says the competition will help to provide better market prices, to win customers, however, in the seasons of high supply and demand, prices could rise, especially during holiday periods.