Graft and Corruption, or Why You Should Keep Your Gas Tank Full in Mexico

gas station

Last month, I had relatives from Canada visiting my family here in Querétaro. We had a grand time driving all over the place and visiting tourist hotspots that we just haven’t had time to explore ourselves since arriving. The downside, of course, is the high cost of fuel that comes with so much travelling.

From my experiences in visiting Mexico many years ago, I recall a very different situation. At the time, Pemex (the federally-owned monopoly for all gasoline distribution in the country) benefited from government subsidies, which ensured that fuel prices stayed low. If memory serves, back in 2013 fuel prices here were equivalent to about $0.70 CAD per litre. That was far lower than what we were seeing in Canada at the time.

Pemex ran into serious financial problems and the government entity became a major drain on resources. To remedy the situation, the government decided to remove the gasoline subsidy, causing prices for the commodity to spike to the highest prices ever seen. The hue and cry resulting from the higher cost was predictable.

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