Mexico: energy point man. [Period July 1981-January 1982]

Journal Article · Tue Feb 02 04:00:00 EST 1982 · Energy Detente; (United States)

OSTI ID:7098681

This issue examines retail petroleum-product prices in the Western Hemisphere and presents tabular data, but the focus is on Mexico. During the period July 1981 to January 1982, the Lopez Portillo government in Mexico doubled the prices of Nova (regular leaded) gasoline and diesel fuel, and raised (premium unleaded) gasoline prices 43%. A few other countries increased prices moderately. The Mexican government justified the drastic increases, using the following rationale: (1) Mexico wastes a lot of energy, its use per unit of Gross Domestic Product more than double that of the industrialized countries; (2) during recent years gasoline consumption has run amuck, increasing 15% annually; and (3) the fuel price increases would not greatly impact the buying power of the Mexican people. The government explained that subsidizing fuel consumption cost PEMEX $12.5 billion during 1981. What hurt worst was the fact that selling a barrel of refined products within the country brings only 1/4 the money that a barrel of exported crude brings. Very little of the subsidy trickles down to lower classes, and 85% of the vehicular fuel is burned by 20% of the population. It is concluded that cheap energy is still risky business, even for major petroleum-exporting countries; further, Mexico may prove to be the point man, in the international movement to reduce domestic fuel subsidies. The petroleum product price/tax report and the hydrocarbon price series are updated for the Western Hemisphere countries.

• OSTI ID: 7098681
• Journal Information: Energy Detente; (United States), Journal Name: Energy Detente; (United States) Vol. 3:2; ISSN EDETD
• Country of Publication: United States
• Language: English and Spanish

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002* -- Energy Planning & Policy-- Petroleum
CANADA
DATA
DEVELOPING COUNTRIES
DIESEL FUELS
ENERGY POLICY
ENERGY SOURCES
EUROPE
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GASOLINE
GOVERNMENT POLICIES
INDUSTRY
INFORMATION
LATIN AMERICA
LIQUID FUELS
MEXICO
NATURAL GAS
NORTH AMERICA
NUMERICAL DATA
PETROLEUM INDUSTRY
PETROLEUM PRODUCTS
PRICES
STATISTICAL DATA
TAXES
USA
WESTERN EUROPE