Aguascalientes, Ags. October 14, 2024. The Dr. Fernando Covarrubias Tejadadirector of the Finance and Accounting bachelor's degree programs at the Universidad Panamericana campus Aguascalientes, offered a detailed analysis of the recent increase in gasoline and LP gas prices in Mexico.. During an interview, he highlighted the various factors that are influencing this increase and explained how it affects both Mexican families and companies.
LP Gas: prices controlled, but with implications for companies
Despite the fact that the price of LP gas has declined since its peak in 2021, when it reached 27 pesos per liter, the current price of 19 pesos is mainly due to a government cap. This measure has benefited millions of families that depend on this resource for their daily activities, but companies that use it on a larger scale face a greater impact on their costs.
"Five out of seven Mexican families that use gas for cooking and bathing have felt a relief with these price controls," said Covarrubias, although he warned that this measure is temporary and could change depending on the new government's decisions.Covarrubias commented, although he warned that this measure is temporary and could change depending on the decisions of the new government.
Rising gasoline prices, a consequence of global factors
In terms of gasoline gasolineCovarrubias pointed out that its price has increased between 21% and 25% during the current six-year term, varying by region. This increase is due to international factors such as the conflict between Russia and Ukrainethe OPEC production cuts. OPEC PRODUCTION CUTS and domestic fiscal policies, such as the suspension of the STPS in 2022which helped contain prices at the time.
"Gasoline in Mexico reflects both global oil fluctuations and government policies to cushion the impact on consumers."he said.
The impact of subsidies on public finances
Finally, the academic addressed the long-term consequences of fuel subsidies. fuel subsidies. Although useful in the short term to control inflation, he warned that they may compromise public finances in the future. "The government should focus resources on sectors such as education, health and economic development, instead of maintaining subsidies," he said.he said.
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