Mexico flags Shell, others for high gasoline prices

In a bid to push private companies to rein in fuel prices, top Mexican officials pointed to Royal Dutch Shell's Mexico unit and other major companies for selling gasoline at prices they said are adding to pressures on inflation.

Mexican energy minister Rocío Nahle said Shell had the highest prices for regular gasoline in Mexico out of 20 of the "most representative brands" according to government data on average national prices during the week of April 6-12.

Shell sold regular gasoline at a price of 20.23 pesos (US$1.07) per liter, according to the government figures, compared to an "inflationary limit" of 19.40 pesos per liter.

Nahle also said Shell had the highest average prices for premium gasoline over the same period out of 21 companies.

A representative of Shell in Mexico did not immediately respond to questions from BNamericas.

Last week, President Andrés Manuel López Obrador (AMLO) complained about high margins made by gasoline station owners and said the government could launch its own small network of stations to sell cheaper fuel.

AMLO has pledged to keep fuel price increases below the rate of inflation, but it is unclear how he plans to control prices. Following Mexico's landmark reform during the previous administration to allow more private energy investment, companies like Shell, ExxonMobil, Total and British Petroleum opened up hundreds of gas stations in the country.

On Monday, AMLO said the government would continue publishing gasoline prices every week so that Mexicans would know where to find the lowest prices. He said he would respect all the contracts to operate gas stations that were granted to private companies by the previous government.

However, AMLO said that he was calling on "big distributors to help us, and I'm sure they will do so, to keep fuel prices in balance so that we comply with the commitment not to increase the price of gasoline."

Nahle also signaled out Wal-Mart de México for having the second highest prices for premium gasoline and the highest prices for diesel out of 19 companies. A Wal-Mart de México representative did not immediately respond when contacted by BNamericas.

The government data showed that the Mexican units of ExxonMobil, Repsol, Total and British Petroleum were also selling fuel at prices that were above an "inflationary limit." Representatives from the companies did not immediately respond to questions from BNamericas.