I wrote recently that many in the U.S. are enjoying plunging gasoline prices. Take a look at what has happened to Mexican’s gas pump experience over the last 7 years. In real terms in pesos, the price of gas has nearly doubled, from 6.76 pesos per liter, to 13.33 pesos per liter now. One thing is for certain…gasoline never actually gets cheaper in real terms! The price never goes down…always up. We’ll see if energy reforms allowing competition into the gasoline market changes this. Right now, and for many years, there’s only one option…PEMEX, the national gasoline and diesel monopoly.
I recently heard a Mexican senator proudly say on a radio show that the monthly hikes in fuel prices, called gasolinazos will end this next January. About time, now that gasoline prices are far higher than in the U.S., even though the exchange rate is near an all time high for the U.S. dollar, even though Mexico exports oil to the world.
Date Exchange rate Price gallon $U.S.
January, 2007 6.76 10.77:1 $2.38
January, 2010 7.88 13.09:1 $2.28
January, 2011 8.84 12.34:1 $2.72
January, 2012 9.82 13.91:1 $2.68
January, 2013 10.92 12.89:1 $3.21
January, 2014 12.32 13.05:1 $3.58
October, 2014 13.22 13.49:1 $3.71
Article in Spanish HERE.
Data Source HERE
Quote of the Day: Set small goals. Then set a deadline. Make a reasonable timeline. We overestimate what we can do in a few weeks, but we underestimate what can be accomplished in a few months or a year.
Malm, Joel Vision Map: Charting a Step-by-Step Course for Your Biggest Hopes and Dreams (p. 37). Moody Publishers.