Shell México says gasoline margins tight

Royal Dutch Shell's Mexico unit said that its profit margins on gasoline sales were less than 10% of retail prices after the company was highlighted by Mexico's government for charging more at the pump than other chains.

On Monday, Mexican energy minister Rocío Nahle said Shell México sold regular gasoline last week at the highest price out of a list of 20 companies. President Andrés Manuel López Obrador (AMLO) suggested that gas station chains should keep gasoline prices in check to help the government meet its pledge that fuel cost increases would not exceed the pace of inflation.

In a statement late Monday, Shell México did not dispute the government's data but said it operated 1% of the gas stations in the country "so we are not a preponderant actor that can have a decisive impact on retail prices."

Shell said the costs of gasoline, logistics and distribution made up 60-65% of retail prices, while taxes accounted for 25% to 30%, leaving a margin of around 10% to be divided between distributors and sellers. The company also said that rising crude prices this year had eroded the effect of a reduction in the government's excise tax.

The company said there were "very small" differences in gasoline prices with other sellers where it operated.

In a bid to pressure private companies to keep prices in check, AMLO said the government will provide data weekly to ensure consumers can find the cheapest fuel.