Mexico's Sheinbaum takes aim at high gasoline prices

Mexico’s President Claudia Sheinbaum said her government would establish mechanisms to avoid increases in gasoline prices.

"In some places the price of gasoline is very high," Sheinbaum told her daily press conference on Monday, citing prices of above 26 pesos (US$1.3) per liter.

"The price of oil has not increased," Sheinbaum said. "This means that the price of gasoline should also not increase."

"We want to prevent the price of gasoline from increasing because of some type of speculation... we're going to establish mechanisms so that gasoline prices do not increase."

During her six-year presidential term, which started October 1, Sheinbaum has pledged that gasoline prices will rise only by the rate of inflation.

Sheinbaum also said that last week she launched a review of the sector to analyze the situation. 

Energy minister Luz Elena González Escobar will meet with state-owned oil company Pemex and other fuel retailers, Sheinbaum said.

"The energy minister is meeting with the gasoline companies to avoid an increase resulting from some type of speculation, and to be able to have the gasoline we promised, not increasing in real terms."

Previous Mexican governments have adjusted the IEPS tax levied on fuel at times of high gasoline prices. Sheinbaum said her administration will continue to use this mechanism.