Mexico's Diesel Deregulation and Carrier Cost Increases

Background

Shippers may see a dramatic increase in pricing over the coming months. This increase doesn’t necessarily come from the ELD mandate, tightening capacity or from carriers looking to pad profits. Mexico’s diesel deregulation efforts, most notably in its pricing, will cause a ripple effect for both shippers and carriers.

We’ve listed a timeline of events to review the history of Mexico’s oil industry regulation and how it’s changed in the past 12 months.

1938 – The Mexican government takes control of the country’s oil industry and kicks out foreign companies.

1992 – The Mexican government takes over fuel pricing as a method of controlling inflation.

2006 – Government fuel subsidies average 1.8 pesos for diesel (about $0.60 per gallon in USD) since that time.

2013 Mexican politicians package the deregulation of fuel prices as one of a set of reforms to energy laws The lawmakers aim to gradually end fuel price controls with these changes.

January 2017 – Diesel prices skyrocket 20% as the government’s ability to increase fuel price ends and deregulation begins.

February 2017 – The Mexican government continues to adjust fuel prices on a weekly basis until February 18, 2017. Then the prices begin to fluctuate daily based on market demand within 90 geographic zones.

Situation

Mexico diesel pricing comparison chart

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