LP Gas: Distribution rate rises to 3.51 pesos per liter and 6.50 per kilo

The Ministry of Energy (Sener) agreed with industry leaders to adjust the liquefied petroleum gas (LPG) distribution rate , which will now be 3.51 pesos per liter and 6.50 pesos per kilogram , reported the Mexican Association of LP Gas Distributors and Related Companies (Amexgas).

This adjustment is part of the first phase of the dialogue with the agency and will be applied to the methodology used to set weekly domestic fuel prices . Amexgas indicated that this level represents a "floor" that may be revised based on regional characteristics and cost fluctuations.

Until July, the average price of LP gas per liter was 2.31 pesos , so the new adjustment represents a significant increase compared to the annual average observed since 2021.

In early August, the average price of domestic LP gas was 13.30 pesos per liter , of which 3.87 pesos correspond to VAT and 9.43 pesos to the national public price , which includes an average commercial margin of 2.88 pesos . Amexgas did not specify whether the 3.51 pesos per liter adjustment will directly impact the final price to the consumer, although the government maintains its commitment not to raise rates above inflation .

Distributors and commission agents in the sector had warned that the Energy Regulatory Commission's methodology since 2021 was affecting their profit margins and the safe operation of infrastructure, even leading to the threat of distribution shutdowns.

Amexgas highlighted its collaboration with Sener to implement the tariff across the country, ensuring a secure and continuous supply of LP gas and fostering appropriate conditions for the development of permitted distribution activities.

The rate adjustment seeks to balance distributor profitability, ensure infrastructure security, and maintain the availability of LP gas for Mexican households .