Hang on to your wallets and grab the Jerry cans before January 1, 2017, as gasoline and diesel prices are going to jump as much as 24% in Baja. Additionally, the price of fuel will no longer be set nationally, but by region. The cost of delivering and servicing stations in remote regions will cause the price to rise even more dramatically through 2017 in rural areas. In Baja California Sur the central regions including Loreto, Mulege, San Ignacio and Guerrero Negro will be hit with the largest increases. In Baja California some of the border areas will follow an entirely different pricing scheme revised weekly.
Effective January 1, 2017, Pemex will raise the nationwide average price of both grades of gasoline and diesel dramatically:
A liter of Magna (regular) will rise 14.2% from the current $13.98 pesos ($2.55/gallon) to $15.99 pesos. ($2.92 per gallon)
A liter of Premium (Rojo) will jump 20.1% from $14.81 ($2.70 per gallon) to $17.79 pesos per liter. ($3.24 per gallon)
A liter of Diesel will rise 16.5% from $14.63 ($2.67 a gallon) to $17.05. ($3.11 per gallon)
For the various regions of the Baja peninsula see the price chart below.
The regions in Baja closest to the distribution points (Rosarito and La Paz) will see the smallest price increases, while remote regions of the central peninsula will see the largest price increases.
Two years ago we saw monthly augmentation in the price of fuels, then were promised a yearly price increase to compensate for inflation. In 2015 that was 3%. The unusual price increases left regular gasoline only pennies cheaper than premium. This pending price increase will increase the difference in price between the two grades as well.
Oil has become the true standard of currency and the current currency of choice is the US dollar. Every other economic element becomes relative to those two values.
With the dramatic fall of the peso against the US dollar over the last two and a half years, the price of Mexican gasoline is currently (20.7:1 exchange rate) $2.55 a gallon. (As of today regular gasoline prices in the continental US range from $2.05 in South Carolina to $2.71 in California.) Since Mexico is a player in the world oil production, the value of the peso fell against the country's own product and a price increase was inevitable.
This is bound to have an equally dramatic effect slowing the Mexican economy and increasing inflation. This will cause the peso to fall further against the dollar. But deregulation of the gasoline prices will phase in across the country this year, so brace yourself...
Deregulation of the price of fuels in Mexico will be phased in over the next 3 months. The price of fuels was set for long periods, for the past two years, the prices were only augmented annually. But by March the price of gasoline will change daily to follow the value of the pesos and costs of production.
January will see the price set by the month. The first two weeks of February the price will be set the first of the week and beginning February 18th, 2017 the prices of fuels will be set daily.
So make sure to tank up before New Year's Eve.