Energy prices fell

During the six-year term of President Andrés Manuel López Obrador, the prices of energy consumed in the country have decreased in real terms (discounting inflation) by 17.6 percent, reveals the latest Government Report with figures taken from the National Institute of Statistics and Geography (Inegi) and the Energy Regulatory Commission (CRE).

The results are compared with previous governments, specifically with the administration of Enrique Peña Nieto, in which the so-called energy reform was implemented and which the current administration considers only served to dismember and privatize to the sector.

The contrast

According to the report, which is available on the Presidency’s website, this 2024 the pricing and tariff policy for goods and services offered by the public sector The government sought to clean up and strengthen the financial situation of public entities. To this end, it defined a scheme of gradual adjustments in the determination of public prices and tariffs, taking into account the price-cost relationship and the expected inflation rate for the year. In addition, it aimed to promote a rational use of public goods and services.the report highlights.

In this regard, and according to figures from Inegi, from December 2018 to June 2024, energy prices fell by 17.6 percent in real terms, while from December 2014 to June 2019 they grew by 4.7 percent.

Below inflation

The government considers electricity, as well as high and low octane gasoline (better known as Premium and Magna) and diesel as energy sources.

According to the document submitted to Congress, electricity prices have decreased by 34.5 percent in real terms under President Andrés Manuel López Obrador’s government.

For its part, it details that the prices of high-octane gasoline, better known as Premium, have had a reduction of 7.9 percent discounting inflation, while from December 2014 to June 2019 they increased 29.6 percent.

In turn, low-octane gasoline, Magna – the most in-demand in the country – saw a 7.6 percent decrease in real terms from December 2018 to June 2024, while between December 2014 and June 2019 they increased by 27.6 percent.

According to the document, in the case of diesel, the decrease is 7.2 percent, and under the previous government, it increased by 29 percent.

The report also highlights that One of the main objectives of the government is to keep fuel prices accessible.and from September 1, 2023 to June 30, 2024, gasoline and diesel prices in Mexico increased by an average of 3.6 percent.

With the above, he points out, it was achieved the objective of keeping prices below inflation so as not to affect the economy of the Mexican population.