Pemex Fuel Pricing Caught Red Handed

Excerpts from news items online…….

Houston Pemex station is a first outside Mexico

http://www.houstonchronicle.com/business/energy/article/Mexico-s-Pemex-opens-Houston-gas-stations-in-bid-6674243.php

December 3, 2015
The fuel on Thursday was among Houston's cheapest, at $1.55 cash per gallon of regular and $1.59 for credit card purchases. The area average is $1.81 a gallon, according to GasBuddy survey data.


Mexico's PEMEX opening five gas station in Texas

http://www.bizjournals.com/sanantonio/news/2015/12/04/mexicos-pemex-opening-five-gas-station-in-texas.html

Dec 4, 2015
Starting in 2016, foreign companies will be able to obtain a permit to set up service stations in Mexico where they will be able to sell fuels from any company. Private companies will be able to freely import refined oil products into Mexico in 2017. The Mexican government will remove all price controls on gasoline and diesel in 2018.


If Pemex is $100 billion in debt, why is it expanding into the U.S.?

http://www.eldailypost.com/news/2015/12/pemex-expands-to-houston-as-it-nears-100-billion-in-debt/

December 16, 2015
Pemex is the only option for drivers in Mexico, and the government has set fuel prices that aren’t tied to the recent decline in crude prices, said José Ángel García, president of the Mexican Gas Station Workers Union. New retail operators will be permitted next year as part of the country’s market reforms, with competitive pricing to begin in 2018, he said. Mexican gasoline costs include higher taxes than in the United States, about $1.25 dollars a gallon compared with 38.4 cents a gallon in Texas.

I have never understood this and am not asking for a long drawn out explanation. The government owns Pemex. Pemex accounts for somewhere between 35% to 45% of the federal budget. Other hands are in the pies as Chris mentioned. But the price of oil worldwide has dropped hugely this year - we paid $1.95 for diesel in TX and then $3.20 in MX. That is a very big difference. Gas is running about the same margin of difference. Post above mentions $6pesos per liter for gas - we pay $14.20mx for diesel. So what does Mexican crude sell for on the international market compared with the rest of the world? Quick look online shows Mexican crude at $39.49US down more than 50% from a year ago - that is September price - comes to down over $50 per barrel - $88 a year ago. Down from a high of $111.90 in March 2012. But price at the pump stays up. I assume this has to do with the federal budget being based on oil? Guess that is the problem with state run business or utilities. This said - I don't understand why they would open a station in the US where prices at the pump are so much lower. Perhaps this was long term plan and the plan did not account for OPEC?

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=IMX2810004&f=M

BTW the first pemex north of los Mochis has crooked pumps

This is absolutely shocking! LOL
RichH

MW

I'm certainly not surprised. do you have a link?

MEXICOWANDERER wrote:

Oops...
I cannot believe the sheer number of dummies who emphatically write that the cost of fuel in Mexico is SUBSIDIZED. Gasoline and diesel is a major CASH COW for Mexican politicians.

There are more people in on it as well, don't give all the credit to knucklehead politicians.

You forgot the Pemex union, union leaders, employees, and the franchisees who I believe outnumber convenience stores now. They wouldn't be buying up franchises if it weren't a good business. Wish I had bought a few stations.

Why would Mexico be any different than any other country. Who doesn't want to get rich? Show me a politician in any country who isn't. Even Mujica turned out to have a few cool million under his wife's name.