Fuel markets face sales declines and supply tensions in Mexico and Argentina

The fuel markets in Mexico and Argentina are facing significant operational and financial challenges. In Mexico, PetroIntelligence data indicates that 59% of gas station owners reported lower sales volumes in August compared to the previous year. Industry players expressed ongoing concerns regarding illegal activities, including fuel adulteration, tax smuggling, and ‘huachicol’ (fuel theft). Approximately 57% of surveyed entrepreneurs noted an increase in these illegal practices in their operating areas, alongside reports of price distortions where some stations sell fuel significantly below market rates.

In Argentina, the sector is experiencing supply tensions driven by both international and domestic factors. Carlos Gold, president of the Cámara de Estaciones de Servicios de Corrientes, noted that global conflicts in the Middle East and rising crude oil prices are impacting refining capacity and product access. This has led to price disparities and supply restrictions, with some oil companies implementing quotas and delivery limits on resellers, making it difficult for stations to meet consumer demand.