As an oil-producing country, why is gasoline so expensive in Mexico?

Indeed, Mexico is an oil-producing country—and its fuel prices are shockingly high: regular gasoline costs 23.99 pesos per liter (approximately RMB 9.50), premium gasoline 28.29 pesos per liter (RMB 11.14), and diesel 26.99 pesos per liter (RMB 10.63). For an oil-producing nation, such prices are truly extraordinary. Behind this lies one company—Pemex (Petróleos Mexicanos, the Mexican state-owned petroleum company). Pemex is a wholly state-owned enterprise, fully owned and controlled by the Mexican federal government. Within Mexico’s legal and political framework, its nature and status are highly distinctive. First, it is a constitutional-level 'state monopoly' entity. Pemex was founded in 1938, when President Lázaro Cárdenas nationalized all foreign-owned oil assets and enshrined 'absolute state control over petroleum resources' into the Mexican Constitution. Thus, Pemex is not merely a commercial enterprise—it is politically regarded as a symbol of Mexico’s national sovereignty and economic independence. Second, it is a 'blended government-and-enterprise' mega-institution. Though nominally a corporation, its operational logic resembles that of a government department: senior appointments—including its top management and board core members—are directly made by the Mexican president, and its policy direction is tightly bound to the incumbent administration’s political will. It lacks financial autonomy: its overall budget requires approval by the Mexican Congress, and the vast majority of its earnings must be remitted to the national treasury as heavy taxes and dividends, funding public expenditures and welfare programs. Within Mexico, Pemex is jokingly dubbed the 'eldest son of the nation'—the government relies on it most heavily, yet it also extracts the heaviest toll from citizens. Having long served as the government’s 'ATM,' Pemex has retained insufficient funds for technological R&D and deepwater exploration, plunging it into a vicious cycle of aging infrastructure, declining output year after year, and ballooning debt. Today, Pemex ranks among the world’s most indebted oil companies, requiring massive fiscal subsidies and sovereign credit backing from the Mexican government just to stay afloat. Hence, a state-owned enterprise being 'large' and 'powerful' does not necessarily benefit ordinary citizens. Some may wonder: Isn’t Mexico America’s backyard? Why haven’t U.S. oil giants like ExxonMobil or Chevron penetrated the market? In fact, these multinational corporations aren’t unwilling to seize this lucrative opportunity—they’ve simply calculated that, given Mexico’s unique 'national fortress' structure, allowing Pemex to dominate is, for now, the dynamic equilibrium emerging from complex stakeholder bargaining. In Mexico, 'oil belongs to the nation' is no mere slogan—it is the core principle enshrined in Article 27 of the Constitution. The day in 1938 when President Cárdenas nationalized the industry is commemorated by Mexicans as the 'Oil Nationalization Day'—a holiday second only to Independence Day.

2026 Commodity Import-Export Analysis: Crude Oil

• Supply side: Production policies of OPEC+, Qatar/Australia (LNG), Indonesia/Australia (coal) • Demand side: China’s manufacturing PMI, winter temperatures in Europe and the U.S., India’s industrialization progress • Geopolitical side: Middle East conflicts, Russia-Ukraine war, sanctions and counter-sanctions Commodity Import-Export Analysis: Crude Oil Analysis Date: April 2026 Data Version: V1.0 Part I: Export Analysis (Supply Side) 1.1 Top 15 Crude Oil Exporting Countries Rank Country Export Volume (thousand barrels/day) Global Share Export Value (billion USD/year) Major Export Markets Core Enterprises Geopolitical Risk Implication for Trading 1 Saudi Arabia ~700–800 16.3% 210.6 China, Japan, South Korea, India, U.S. Saudi Aramco Medium (Middle East conflict) The 'central bank' of global oil prices; holds the largest spare capacity, capable of adjusting prices via production hikes/cuts 2 Russia ~500–600 9.1% 117.2 China, India, Turkey Rosneft, Lukoil Very High (sanctions) A 'discount supplier' under sanctions; exports forcibly redirected toward Asia, with growing dependence on China 3 U.S. ~400–450 9.1% 117.2 Europe, South Korea, Japan, India ExxonMobil, Chevron Medium An 'elastic producer' post-shale revolution; production cost ~USD 40–60/barrel—the de facto 'price ceiling' 4 UAE ~300–350 8.6% 111.0 Japan, India, China, Singapore ADNOC Medium (Middle East conflict) A core Gulf producer; export capacity vulnerable to Strait of Hormuz blockades 5 Canada ~400–450 7.7% 99.6 U.S. (97%), China, Europe Canadian Natural Resources, Suncor Energy Low The U.S.’s 'dedicated supplier'; exports highly dependent on the U.S. market and U.S.-Canada relations 6 Iraq ~350–400 7.7% 99.5 China, India, U.S., South Korea Iraq National Oil Company High (political instability) OPEC’s second-largest producer; political instability remains the biggest supply-side variable 7 Norway ~150–200 3.9% 50.2 Europe, UK Equinor Low A stable source of light crude for Europe 8 Nigeria ~120–150 3.8% 48.9 Europe, India, U.S. NNPC, Shell High (pipeline theft, outages) Africa’s largest oil producer; output chronically hampered by theft and unplanned shutdowns 9 Kuwait ~150–200 3.3% 42.7 China, India, Japan, South Korea Kuwait Petroleum Corporation Medium (Middle East conflict) A core Gulf producer; exports vulnerable to Strait of Hormuz blockades 10 Brazil ~150–200 3.3% 42.6 China, U.S., Europe Petrobras Medium Pre-salt deepwater fields represent future growth potential 11 Kazakhstan ~120–150 2.8% 35.4 Europe, China, Russia Tengizchevroil Medium A key Caspian supplier; export reliant on Caspian pipelines 12 Angola ~100–120 2.5% 31.3 China, India, Europe Sonangol Medium A major African crude source for China 13 Libya ~80–100 2.2% 27.3 Europe, China National Oil Corporation Very High (civil war) Output highly volatile—acts as a 'pulse variable' for oil prices 14 Oman ~80–100 2.0% 25.8 China, Japan, India Oman Oil Medium A non-OPEC Middle Eastern producer with stable exports 15 Mexico ~80–100 1.7% 21.7 U.S., Spain, India Pemex Medium Output continuously declining; export capacity weakening

Pemex Posts $573 Million Loss Even as Oil Prices Have Surged

20 hours ago

Mexico's state oil firm Pemex reported a $573 million Q3 loss despite soaring crude prices due to inefficiencies. With $77.6 billion in debt, the company faces pressure from government bailouts and declining production capacity.

bloomberg

2026-07-31

Mexico's Pemex reports Q2 net profit of $1.03 billion

2026-10-30

Pemex Posts $573 Million Loss Even as Oil Prices Have Surged

Pemex Posts $573 Million Loss Even as Oil Prices Have Surged

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