LP gas price has its biggest jump since the beginning of regulated rates

The maximum price for consumers of liquefied petroleum gas (LP) for the week of March 13 to 19 will be 25.85 pesos per kilogram in the national average, which increased by 6.4% compared to the previous week, having its highest increase since the price cap policy began in August last year.

With this, the fuel used by 85% of the country’s households increased for the third consecutive week, as a consequence of the increase in oil prices derived from the uncertainty due to Russia’s invasion of Ukraine, while the Mexican Export Mix stood at its last price was 104.96 pesos per barrel.

In the previous week, the national average ceiling price had already had an increase of 3.4% compared to the previous price, an increase that is the third largest that has been registered, after the current one and the one that was registered on November 21, in which an increase of 4% was decreed compared to the previous week.

The price cap policy was implemented as a decision of the federal government after during 2020 – in which international oil prices were even negative due to distortions in demand due to low mobility – the country’s distributors increased consumer prices.

The last national average price without a cap was 25.19 pesos per kilogram, which has already been exceeded eight times throughout the 32 weeks in which the CRE has decreed weekly cap prices for 125 regions of the country.

This week, once again, the last real price that the country’s distributors placed before their sales is exceeded and, according to the regulator’s publication, it is even 2.6% higher. However, the price that will prevail this week is still 3.3% lower than the maximum regulated price observed in Mexico, which was observed from October 17 to 23, 2021 (26.73 pesos per kilogram).

This dynamic is a reflection of the variation observed in the price of propane (the main component of LP gas) in the Mont Belvieu market, which was 11.5% last week, reaching 1.45 dollars per gallon, the highest level since the third week of October 2021.

Regional prices on the rise

San Quintín and Mulegé, in Baja California, are the towns with the highest maximum price in the country, with an increase of 4% in one week and a price of 30.22 pesos per kilo.

Matamoros, Reynosa, Río Bravo and Valle Hermoso in Tamaulipas, are still the regions with the lowest price cap in the entire country, although this energy price will increase 6% compared to last week, according to the decree of the Energy Regulatory Commission ( CRE).

In Guadalajara and other towns in Jalisco, the increase for the week of March 13 to 19 will be 6%, since the price of domestic gas sold per liter was 26.31 pesos per kilogram.

In some municipalities of Nuevo León, including Monterrey, the inhabitants will have to pay 3.9 percent more than the previous period, since the cost of energy sold per kilo was set at 28.89 pesos.

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