Pemex is Mexico’s government run oil company.  In the first half of this year Pemex reported $34 million in sales.  However, they spent almost half of their gross importing fuel and fuel derivatives.  During this time sales actually increased 5.4 %.  Since gas prices in Mexico are controlled by the government, they are at liberty to increase them to suit their needs.  Recently, prices have been hiked to help reduce a subsidy expected to cost $20 billion.  The subsidy is aimed at shielding consumers from high import prices.  Last month prices increased three times to settle at $2.80/gallon for standard grade gas $3.33/gallong for premium).

While this still seems like a bargain to Americans, it represents the largest monthly hike in Mexican gas prices in three years.

Let’s hope the trend slows down a bit!

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