Introduction to Onexpo and the Gasoline Price Cap
The National Organization of Petroleum Outlet Owners (Onexpo), representing gasoline station owners across Mexico’s 32 states, has expressed concerns about maintaining the current gasoline price cap of 24 pesos per liter for regular gasoline. This commitment is part of a government-backed initiative to support consumers.
Who is Enrique Félix Robelo?
Enrique Félix Robelo, the newly elected president of Onexpo, highlighted these challenges during the opening of their annual convention. His organization’s mission is to help control gasoline prices based on a cost analysis for each liter sold.
Factors Affecting the Price Cap
Félix Robelo emphasized that the viability of this voluntary agreement hinges on external factors, including oil prices, exchange rates, regional differences within Mexico, and logistical considerations.
“If the terminal price drops, we can adjust prices downward. However, if the terminal price remains steady or increases, it will become increasingly difficult to sustain the current price,” warned Félix Robelo.
Current Participation and Cost Breakdown
As of now, over 90% of gas stations in the country have joined this agreement. This means that gasoline station owners are voluntarily not raising prices for regular gasoline below 87 octane, keeping the average gasoline price around 23.50 pesos per liter, according to data from the Federal Consumer Procurator’s Office. This stability is maintained as long as government incentives support a rational gasoline business.
Onexpo’s leadership reminded attendees at their recent conference in the Riviera Maya that 48% of the total cost is attributed to the international market value of the product.
Key Questions and Answers
- What is Onexpo? Onexpo is the National Organization of Petroleum Outlet Owners, representing gasoline station owners across Mexico.
- What is the current gasoline price cap? The cap is set at 24 pesos per liter for regular gasoline.
- Why is maintaining the price cap challenging? Factors like volatile oil prices, exchange rates, regional disparities, and logistical issues make it difficult to sustain the current price.
- How many gas stations have joined the agreement? Over 90% of gas stations in Mexico have agreed to this voluntary price cap.
- What percentage of the total cost is attributed to international market value? 48% of the total cost is due to the international market value of the product.
