**Federal Government Aims to Cap Gasoline Prices at 24 Pesos Per Liter**
In an effort to stabilize fuel costs, the Mexican federal government is working on an agreement with gasoline industry leaders to ensure that gasoline prices do not exceed 24 pesos per liter. President Claudia Sheinbaum announced on February 12, 2025, that this potential agreement could be finalized within two weeks.
During a morning press briefing at the National Palace, President Sheinbaum emphasized the administration’s commitment to keeping gasoline prices stable. “The agreement is well-advanced, and our goal is to prevent gasoline prices from exceeding 24 pesos per liter,” she stated.
The President’s administration has been engaging in discussions with gasoline industry leaders, aiming for a voluntary agreement to maintain the price limit. The proposal includes introducing eight new laws and amending three existing ones to provide assurance to both public and private sector enterprises within the industry.
The initiative is reminiscent of the Inflation and Price Stability Package (PACIC), where efforts were made to maintain the affordability of basic food items. “Our intention is to avoid exploitation by gas station operators, and instead of imposing a price or profit cap, we aim for a mutual agreement. We are close to achieving that,” Sheinbaum added.
The plan, if agreed upon, suggests a potential slight decrease in hydrocarbon prices compared to 2018 levels. The working groups responsible for this agreement include the Federal Consumer Protection Office (PROFECO), the Security, Energy, and Environment Agency (ASEA), Petroleos Mexicanos (PEMEX), and the Ministry of Energy (SENER).
The proposed agreement takes into account various factors influencing gasoline prices, including PEMEX production, gasoline imports, taxes such as the Special Tax on Production and Services (IEPS), and Value Added Tax (IVA), alongside profit margins for both the state-owned company and gas station owners.
President Sheinbaum stressed that considering inflation rates, the capped price would not only prevent prices from rising since 2018 but could result in a slight reduction. “We expect to sign the agreement with all gas station operators within the next two weeks. It’s a voluntary agreement to maintain prices below 24 pesos,” she remarked.
**Secondary: Rising Fuel Costs Spur Government Action**
Amid a global uptick in fuel prices, governments worldwide are exploring measures to cushion consumers from escalating costs. The fallout from international conflicts, disruptions in supply chains, and inflationary pressures has compelled policymakers to devise interventions to stabilize domestic markets.
Governments in several countries have implemented fuel subsidies, temporarily suspended certain fuel-related taxes, and negotiated with industry stakeholders to cap prices. These steps aim to prevent further economic strain on consumers and mitigate the widespread impact on industries reliant on fuel.
In Mexico, where the federal government is actively pursuing an agreement to cap gasoline prices, discussions are part of a broader strategy to ensure economic stability and protect consumers from volatile global fuel markets. As international dynamics continue to shape energy policies, Mexico’s proactive approach to negotiating price caps highlights a commitment to balance consumer protection with industry sustainability.