As oil prices surge due to the war in the Middle East, causing pain at the pump for motorists in many countries, the Mexican government has renewed a gasoline price cap agreement with gas station owners for an additional six months.
President Claudia Sheinbaum, Energy Minister Luz Elena González Escobar and other federal officials met with representatives from more than 20 gas station companies on Wednesday to renew a pact to keep the price of gasoline below 24 pesos (US $1.34) per liter, equivalent to US $5.07 per gallon.
Mientras en el mundo sube el precio de la gasolina, en México protegemos la economía de las familias, a través de la renovación del acuerdo voluntario con el 96% de las estaciones de servicio para que la gasolina regular se mantenga en menos de 24 pesos por litro. pic.twitter.com/yG33VI6yOX
— Claudia Sheinbaum Pardo (@Claudiashein) March 11, 2026
After the National Palace meeting, Sheinbaum took to social media to trumpet the renewal of the agreement that first took effect just over a year ago.
“While gasoline prices rise around the world, in Mexico we are protecting families’ economies through the renewal of the voluntary agreement with 96% of service stations so that regular gasoline remains below 24 pesos per liter,” she wrote on X, Facebook and Instagram.
Gónzalez published a similar post to her X account. She asserted that the agreement between the government and gas stations “confirms that energy must always be at the service of the people of Mexico.”
According to an Energy Ministry statement, representatives of 25 gas station companies voluntarily joined the agreement.
Among those companies — some of which operate Pemex-branded gas stations — are G500, Grupo Hidrosina, OXXO Gas, Servifácil and Petrodiésel del Centro.
On behalf of the companies, the CEO of Servifácil, Eugenio del Valle, “reiterated the willingness of the gasoline industry to continue working in coordination with the Mexican government toward a common goal,” according to the Energy Ministry statement.
That goal is for fuel to “continue to be an engine of development, competitiveness, and well-being for all Mexicans.”
Gas stations in Mexico source a lot — but not all — of their fuel from Mexican refineries, helping them to maintain lower prices. The government can also temporarily reduce or eliminate the IEPS excise tax on fuel to keep prices low.
Sheinbaum said Monday she was prepared to reduce the IEPS on gasoline amid the conflict in the Middle East “if necessary.”
Pemex CEO: Government could forge a similar pact for diesel
After the meeting between federal officials and the representatives of gas station companies, the CEO of state oil company Pemex said that the government could reach a similar pact with the fuel sector to cap the price on diesel, which is around 4 pesos more expensive than gasoline per liter.
Víctor Rodríguez Padilla said that a price cap for premium gasoline is not necessary as the market for that fuel is very small and motorists who purchase it are generally better off.
“The majority of [fuel] sales are of Magna [regular] gasoline,” he said.
According to Energy Minister González, regular gasoline is used by more than 85% of vehicles in Mexico.
Brent crude tops $100 per barrel on Thursday
The New York Times reported on Thursday afternoon that “the price of Brent crude, the global benchmark for oil, was about $99 a barrel on Thursday, up nearly 8 percent, after briefly crossing above $100 earlier in the day.”
On Monday, “the price of Brent spiked to nearly $120 a barrel as traders feared long-lasting cuts in supplies,” the Times reported.
Before the United States and Israel attacked Iran on Feb. 28, Brent was selling for around $73 a barrel. A key factor in the increase in the price of oil is the closure of the Strait of Hormuz, located off Iran’s southern coast. Around 20% of global oil supply usually passes through the narrow waterway that links the Persian Gulf to the Gulf of Oman, which connects with the Arabian Sea.
Prices for West Texas Intermediate (WTI) crude, the U.S. benchmark, and Mexican crude have also increased during the war in the Middle East, but they are both cheaper than Brent.
The Times reported that WTI rose to $95.73 per barrel on Thursday, while Mexican crude closed at $81.59 per barrel.
Gasoline prices have increased in the United States this week, although motorists there still pay considerably less than their counterparts in Mexico.
With reports from El Economista and Sin Embargo
