EconomyWhere is Mexico? The cheapest gasoline and electricity rates...

Where is Mexico? The cheapest gasoline and electricity rates in Latin America

Mexico ranks 12th among the countries of Latin America and the Caribbean with the cheapest gasoline , according to data from Global Petrol Prices. And, in terms of electricity prices, it has the fourth lowest rate in the region.

With updated data up to September 5, gasoline in Mexico cost an average of 1,191 dollars per liter, just a little cheaper than in Cuba, where a liter costs 1.26 dollars.

Countries with the cheapest gasoline in Latin America

The cheapest gasoline is still in Venezuela, where it costs just $0.022 per liter, followed by Bolivia, Colombia and Ecuador. In the United States, for its part, a liter of gasoline is sold at 1,083 dollars, in a full decline in fuel prices; In August alone, gasoline prices fell by more than 10% in the northern neighbor.

For its part, in Mexico, “energy prices showed a monthly decrease of 0.31%, reaching an annual rate of 8.14%. In the interior, the decrease was due to the prices of LP gas, which fell 1.83% monthly, and electricity, which fell 0.44% monthly. For its part, domestic natural gas rose 1.42% monthly or 31.21% annually, while high-octane gasoline rose 0.34% monthly and low-octane 0.21% monthly, with annual increases of 8.03% and 7.79%, respectively. recently indicated the Banco Base in one of its reports on inflation in August.

For these reasons, the Ministry of Finance and Public Credit (SHCP) to gasoline. This after several months applying 100% subsidies plus other additional incentives.

In the case of Colombia, the new government of Gustavo Petro is aiming to raise the price of gasoline by also eliminating part of the subsidies that are destined for its consumption. “Almost half of the national budget deficit (…) is produced by not raising the price of gasoline,” justified the president in a tweet.

Colombians pay for some of the cheapest gasoline in the Americas thanks to a fuel price stabilization fund, which covers the difference between oil prices on the international market and the internal value set by the government.

The average price of gasoline, until September 5, 2022, worldwide is 1.34 dollars per liter.

“There is a substantial difference in these prices between different countries. As a general rule, the richest countries have the highest prices, while the poorest countries and countries that produce and export oil have significantly lower prices. An exception is the United States, an economically advanced country with the lowest oil prices. gasoline. The differences in prices between countries are due to the different taxes and subsidies for gasoline,” said Global Petrol Prices.

The cheapest electricity in Latin America

Regarding electricity prices, Mexico has the fourth cheapest rate in the region, with a cost of 0.086 dollars per Kilowatt-Hour, at December 2021 prices. In the first places are Cuba, Argentina and Paraguay as the countries with the cheapest electricity in Latin America.

While in Europe they suffer

On the other side of the Atlantic, the European Union is suffering one of the biggest escalations in electricity prices in recent decades. Germany has the fourth highest tariff in the world, followed by the Netherlands, the United Kingdom, Spain and Belgium.

The Old Continent is willing to make drastic changes in the policies that govern the energy market, in the midst of a gas shortage crisis caused by the low supply from Russia, in the midst of the war against Ukraine.

The German chancellor announced on Tuesday that he wants a reform of the electricity market applicable in his country “from this winter”, to help lower prices and reduce profits in the sector, while the issue is debated at Union level European.

The reform wanted by Berlin is proposed “in coordination” with the EU and must be “implemented at great speed from this winter”, stressed Olaf Scholz in a speech before German company bosses.

“It is inconceivable that those who produce electricity with wind, solar or coal power get additional benefits because the price is determined based on the electricity produced with gas,” he added.

In the European market, it is the cost price of the last source of electricity mobilized to meet demand – often gas plants – that determines the price imposed on all operators on the continent.

All countries have access to the same oil prices on international markets, but different taxes are imposed. As a result, gasoline prices are different.

With information from AFP and Global Petrol Prices.

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