Gasoline, at a stable price, priority

Claudia Sheinbaum's administration has successfully renews the agreement with gasoline owners to stabilize fuel prices.

The President of Mexico announced that the agreement to maintain stable fuel prices within the domestic market was endorsed.

It's worth remembering that last February, Sheinbaum announced a voluntary agreement with gas station owners to establish a maximum price of 24 pesos per liter for Magna gasoline in Mexico.

This agreement, signed at the National Palace, sought to keep the price of gasoline below this limit, taking inflation into account and without imposing mandatory obligations on gas station owners.

Yesterday, the government and the gas station owners endorsed the agreement.

It was renewed for another six months, with the possibility of a three-month review in case any adjustments were needed.

For now, the working groups will continue to simplify procedures.

On behalf of the Mexican government, the negotiations are being led by the Ministry of Energy, headed by Luz Elena González Escobar, and the following participated: Asea, the Treasury, Customs, the Ministry of Citizen Security, Pemex, Profeco Sat, CNE, Semarnat, and the digital agency.

Just over six months after the agreement came into effect, the national average price of regular gasoline was reduced below the established threshold.

By August 15, the average price dropped to 23.58 pesos per liter.

This reduction and price stability is very significant for millions of families and businesses.

It is worth highlighting González Escobar's skill in achieving this endorsement, which he relied on inter-institutional coordination.

President Claudia Sheinbaum's priority is ensuring that Mexicans have access to affordable gasoline.

In fact, one of the main goals of Petróleos Mexicanos, led by Víctor Rodríguez Padilla, is to produce more gasoline and reduce imports.

But, on the final consumer price side, keeping the price of gasoline adjusted only for inflation is one of the government's goals.

This is the task that the head of Sener has been working on.

It has been a long and complicated negotiation with the last link in the fuel commercial chain.

Yesterday, the president of Mexico announced via social media that an agreement had been reached to stabilize fuel prices.

It is part of the Pacic commitments to prevent a sharp rise in inflation.

The Chief Executive did not offer further details about the agreement reached with gasoline and diesel distributors and retailers.

At the meeting, she was accompanied by the Secretary of Energy, Luz Elena González Escobar.

The first agreement, between the federal government and gasoline owners, was signed last February, when the parties agreed to keep the price of Magna, or low-octane, gasoline at a maximum of 24 pesos per liter.

This is part of the commitments made in the Package Against Inflation and High Costs (PACIC), which aims to prevent the prices of basic consumer goods from rising excessively.

It's worth noting that in times like the present, when inflation is persistent, keeping gasoline prices stable is very important.

The specific weight of gasoline prices on general inflation in Mexico varies according to the economic context, but can be estimated through its impact on the National Consumer Price Index (INPC), which measures inflation.

According to INEGI, the "gasoline" category (which includes low- and high-octane gasoline, such as Magna and Premium) accounts for approximately 3.7% of the INPC basket, reflecting the average spending of Mexican families on this product.

However, its real impact on overall inflation may be greater due to indirect effects, as the price of gasoline influences the costs of transportation, production, and distribution of goods and services.

For now, the government has achieved an additional pause on potential fuel price increases.

We'll see.

Glimpses

With a valuation of $1.3 billion, Kapital joins the club of Mexican unicorns.

The financial institution aims to consolidate its position as "the country's business bank."

Mexican fintech Kapital reached a valuation of $1.3 billion this Tuesday, joining the select group of national companies that have achieved unicorn status.

The announcement follows a new round of funding in which the institution raised $86 million, led by Tribe Capital and Pelion Ventures.

This development comes shortly after Kapital completed the purchase of the assets, liabilities, branches, and trusts of Intercam Banco, Intercam Casa de Bolsa, and Intercam Fondos, a transaction that gave rise to Kapital Grupo Financiero.

The acquisition is still subject to approval from the CNBV and other Mexican regulatory authorities that already oversee Kapital.