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Mexico’s Energy Secretariat announced Thursday, July 28, that LP natural gas will be subject to a maximum price cap for an indefinite period of time starting in August.

In a published statement, Mexico’s Energy Regulatory Commission (CRE) stated that the new ruling will replace the government’s current price-setting program, which went into effect in July 2021 as an emergency provision to put the brakes on surging gas prices.

The new ruling will have no predetermined period of application, the statement said.

“Setting maximum prices for LP gas is equivalent to granting a benefit to the Mexican people community. The price will remain fixed and permanent with this regulation in order to prevent the rise in fuel prices from being paid at the expense of the citizens,” the statement read.

“Approximately 79 percent of the Mexican population uses LP gas as their main fuel in their daily activities. Therefore, the social interest that regulating excessive prices entails is perceptible.”

The 2021 cap was established as a result of an emergency directive from the Energy Secretariat, with an initial validity of six months, which by law could only be extended for another equal period, due to expire on Friday, July 29.

The CRE said that the cap has been successful in protecting consumers, since, without this measure, the price would have reached 35.36 pesos per kilo, instead of the between 23 and 27 pesos it is currently at, depending on the region.

The CRE also estimated that, over a 12-month period, the permanent cap will result in savings of 29.62 billion pesos for 23 million Mexican families, without affecting the operating capacity of the country’s 876 distribution permitholders.



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