Emily Medina Crafts Mexico Gasoline and Diesel Market Overview

EPRINC Non-Resident Fellow Emily Medina has crafted a primer on the Mexican Gasoline and Diesel Market as part of the EPRINC Mexico Initiative.

The U.S.-Mexico-Canada Agreement (USMCA) contributes to both the strength and sustainability of the North American petroleum renaissance. North American cross-border energy trade is extensive and the movement of crude oil, refined petroleum products, and natural gas contributes to the expanding national economies in the USMCA.

An essential element to ensure efficient energy production throughout the production platform is allowing energy flows to move unimpeded. The expanding trade in petroleum products, especially gasoline and diesel, is a case in point. This trade has been beneficial to the U.S. refining industry by allowing processing facilities to operate efficiently at high volume. Mexican consumers benefit from product exports from the U.S. (and Canada) by gaining access to secure and competitively priced gasoline and diesel fuel. Some Mexican officials have raised energy security concerns arguing that Mexico is too dependent on U.S. supplies and that domestic production should be encouraged or subsidized as a substitute for imports.

Addressing energy security concerns is a complicated issue and will be the subject of a more in- depth treatment of the Mexican petroleum products market in a subsequent report. This policy brief presents an overview of the current gasoline and diesel market in Mexico.

Click here to access the paper.