Mexico delays signing of fuel price cap agreement

The Mexican federal government and fuel distributors have postponed the signing of the voluntary pact intended to establish fuel price caps. While the renewal was originally scheduled for this week, officials expect the agreement to be finalized before the end of the month.

The proposed renewal includes a six-month term, featuring working groups to review profit margins for gas station operators. Industry representatives have requested a shorter duration for the agreement, citing concerns over rising operational costs related to inflation and upcoming salary increases. In response, authorities have offered to specifically review the impact of these cost increases in December.

The agreement includes a price cap of 27 pesos per liter for diesel. Additionally, the pact will maintain current reductions in bank card transaction commissions at service stations. Industry experts note that the pact has been instrumental in containing fuel price hikes and mitigating inflationary pressures, utilizing mechanisms such as the Special Tax on Production and Services (IEPS) to stabilize costs despite international oil market fluctuations.