Magna Goes Over 13 pesos

I am a bit confused. I thought Pemex was owned by the MX Gov't but run by the unions. I am not sure that qualifies as subsidized but not sure. I have heard that income from Pemex accounts for about 45% of the MX Gov't budget. They do not put money into Pemex - they take money out.

I also heard that what they are opening to competition is drilling because they do not have the technology to drill. Companies like Haliburton and Schlumberger are exploring places to drill and how to drill. But I had not heard that there will be any other gas stations in MX other than Pemex.

Pemex (MX Gov't) sells oil to the US. The US gets the majority of their imported oil from Canada at somewhere around 25% and second biggest supplier is Mexico at somewhere between 15 - 20%. So Pemex profits (or should) from exports to the US.

I can't remember that exact year but somewhere around 2007 or 2008 I think we were paying close to $5 a gallon in the US - we keep a log. In MX our conversion came out to paying about $1.80 a gallon back then. But MX has increased the price at the pump at the legal limit of 10 centavos a month for quite a few years now. I am not positive of all my figures so feel free to correct.

I do not know how the people of Mexico can keep up with these costs. I don't know how the truckers do it - let alone the average citizen. In the US the truckers get a "surcharge" to cover fuel costs. I was a trucker back in the 80s and got 13% of linehaul for surcharge - I actually made more on the surcharge than what fuel cost me. But all of that is added to the cost of whatever product is being carried so in the end it is the consumer who pays.

This is all off the top of my head. I do wish that when people post statistics or facts or whatever - that they would also post a website where we can read the articles where the information comes from.

I was in Venezuela about 25 years ago and rented a car and was shocked to find gasoline at 17 cents a gallon. I read somewhere (awhile ago so don't remember where) that gasoline is still 17 cents a gallon in Venezuela. They are an OPEC country and the Gov't runs the oil so they sell to the rest of the world and the people benefit. Why can't Mexico work something like that out?

We are in California and the best price we have found for diesel is $3.87 - gasoline is about $3.67. They tax gasoline at around 35 cents a gallon but only 18 cents a gallon for diesel - that is just state tax - not local or sales tax or federal tax. We will be in AZ in a couple weeks where I read diesel can be found for around $3.60.

darbone85737 wrote:
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ps. regular gasoline here in Tucson is $ 3.21 today

$3.15 to 3.19 per today's gasbuddy, http://www.tucsongasprices.com/GasPriceSearch.aspx

rocmoc n AZ/Mexico

DutchmenSport wrote:

rocmoc wrote:
Just heard on Business News this morning, Gas in the USA is suppose to drop $0.20 per gal as we move into the winter gas season...

Um ...20 cents from what? Fuel prices lowered over the summer months here, got down to about $3.20 ish. In the last couple weeks, it's gone back up to about $3.60 again .... so..... what's the baseline for the 20 cents?

20 cents lower than today's prices per Business News on NBC. Over the last couple weeks the prices has gone down in AZ.

In CA the price will go up this winter as State Gov passed a new higher gas taxes to support the state's Green program. Have read price could go up from 15 cents to 70 cents a gal depending the parties position on the tax. Will not really know until it goes in effect.

rocmoc n AZ/Mexico

Fuel in Mexico has always been subsidized by the government. Now that they are moving away from government owned PEMEX to privatization it may be they are phasing out subsidy to entice the companies who will be producing and selling fuel in the future. No corporation is going to be subsidizing fuel costs to the buying public at the expense of their shareholders.

ps. regular gasoline here in Tucson is $ 3.21 today

rocmoc wrote:
Just heard on Business News this morning, Gas in the USA is suppose to drop $0.20 per gal as we move into the winter gas season...

Um ...20 cents from what? Fuel prices lowered over the summer months here, got down to about $3.20 ish. In the last couple weeks, it's gone back up to about $3.60 again .... so..... what's the baseline for the 20 cents?

silversand wrote:
Normalized to US gallon / US dollar for Q2 2014, Mexico's gasoline buying cohort spent 12.14% of their income (the country's average income) on this fuel type. By comparison, the US gasoline buying cohort spent 2.5% of their incomes on gasoline in Q2 2014. UK gasoline buyers spent 6.87% of their income on gasoline in the same Q. Venezuela is the World's lowest cost for consumers, at only 0.13% per buyer. The highest is the Philippines, at 55.72% of income is spent on gasoline per buyer! Argentinians pay a whopping 20.22% of their incomes on gasoline. But Mexican gasolne buyers are still WAY better off vis gasoline cost per average 2014 income than the Chinese. Of the World's 61 polled countries, Mexico is just about in the middle of gasoline affordability. BTW, the official Mexican unemployment rate was (05/2013) at 4.9%; while the US unemployment rate at the same time was 7.6% (makes you wonder how Mexico compiles statistics).

Saudi Arabian gasoline buyers pay 0.65% of their income. Luxembourgers who buy gasoline pay a measly 2.21% of their income HOWEVER, their US dollar normalized price per US gallon in that country is $7.02 ! But check this out: Denmarkers pay $9.14 a US gallon, however this only represents 5.39% of their income for their gasoline buying population cohort.

The above from Bloomberg L.P. financial services 2014

silversand, did Bloomberg state anywhere what Normalized means? How many gals per month used or miles driven? How do you compare a small island to a larger country? A country with a larger rural population could have persons driving more miles using more gals. A country less developed compared to a over developed would use less fuel.

rocmoc n AZ/Mexico

Just heard on Business News this morning, Gas in the USA is suppose to drop $0.20 per gal as we move into the winter gas season. When the Mexican Gov decided to raise the prices at Pemex, wasn't it suppose to be normalized with the USA prices? So now they are charging more, will they drop the prices? My guess is NO since Pemex profits fund the General budget of Mexico. Someone know better?

rocmoc n AZ/Mexico

Normalized to US gallon / US dollar for Q2 2014, Mexico's gasoline buying cohort spent 12.14% of their income (the country's average income) on this fuel type. By comparison, the US gasoline buying cohort spent 2.5% of their incomes on gasoline in Q2 2014. UK gasoline buyers spent 6.87% of their income on gasoline in the same Q. Venezuela is the World's lowest cost for consumers, at only 0.13% per buyer. The highest is the Philippines, at 55.72% of income is spent on gasoline per buyer! Argentinians pay a whopping 20.22% of their incomes on gasoline. But Mexican gasolne buyers are still WAY better off vis gasoline cost per average 2014 income than the Chinese. Of the World's 61 polled countries, Mexico is just about in the middle of gasoline affordability. BTW, the official Mexican unemployment rate was (05/2013) at 4.9%; while the US unemployment rate at the same time was 7.6% (makes you wonder how Mexico compiles statistics).

Saudi Arabian gasoline buyers pay 0.65% of their income. Luxembourgers who buy gasoline pay a measly 2.21% of their income HOWEVER, their US dollar normalized price per US gallon in that country is $7.02 ! But check this out: Denmarkers pay $9.14 a US gallon, however this only represents 5.39% of their income for their gasoline buying population cohort.

The above from Bloomberg L.P. financial services 2014

nomad297 wrote:
What is Magna? I googled it and I can't work it out.

Bruce

Regular unleaded :)

What is Magna? I googled it and I can't work it out.

Bruce