Background on LP Gas Distributors and Their Relevance
The Asociación Mexicana de Distribuidores de Gas LP y Empresas Conexas (Amexgas), led by Rocío Robles Serrano, represents the companies responsible for distributing liquefied petroleum gas (LP) across Mexico. These distributors play a crucial role in supplying LP gas to approximately 85% of Mexican households, making their actions directly impactful on the daily lives of millions.
Negotiations and New Tariff Agreement
Following discussions with the subsecretaría of Hidrocarburos under Mexico’s Secretaría de Energía, Amexgas successfully secured a minimum profit margin for LP gas distribution. This new tariff, set at $6.5 per kilogram and $3.51 per liter, marks a 52% increase from the average of 2.31 pesos per liter they had been earning between January and August 2025.
Impact on Pricing Formula
The Comisión Nacional de Energía (CNE) will now incorporate this new tariff into its weekly formula for determining maximum selling prices of LP gas across Mexico’s 145 regional divisions. Between January and August 2025, the distribution margin averaged 24.7% of the final maximum price to consumers. The new tariff, however, would constitute 37% of the average price throughout 2025 with the same final sales price.
Future Goals and Market Dynamics
Amexgas aims to eliminate the price cap set by authorities, allowing them to align LP gas pricing more closely with international market trends for propane. This flexibility would enable distributors to adjust prices up or down according to market fluctuations without negatively affecting their operations.
The tariff, described as a “floor” subject to potential adjustments by authorities for regions requiring special attention due to cost variations, represents a significant step forward for LP gas distributors in Mexico.
Historical Context and Comparison
In the tariff’s inaugural year, the distribution margin accounted for only 12.6% of the final price per liter ($11.31). However, by 2023, it had risen to 33.4%, while the final price dropped to $8.34 per liter.
Key Questions and Answers
- What is the new profit margin for LP gas distributors in Mexico? The new tariff is set at $6.5 per kilogram and $3.51 per liter, marking a 52% increase from previous margins.
- Who negotiated this agreement with the Mexican government? Amexgas, led by Rocío Robles Serrano, engaged in dialogue with the subsecretaría of Hidrocarburos under Mexico’s Secretaría de Energía.
- How will this new tariff affect LP gas pricing? The Comisión Nacional de Energía will incorporate the new tariff into its weekly pricing formula, potentially leading to adjustments in regional prices.
- What are Amexgas’s future goals regarding LP gas pricing? Amexgas seeks to eliminate the price cap imposed by authorities, enabling them to adjust LP gas prices in line with international market trends.
- How has the distribution margin changed over time? The distribution margin increased from 12.6% of the final price per liter in its first year to 33.4% by 2023, while the final price dropped from $11.31 to $8.34 per liter during the same period.
