Mexico’s government has directly intervened in energy prices to avert inflation resulting from the war in Iran and the struggle for control of the Strait of Hormuz, President Claudia Sheinbaum said Monday.
In her morning press conference, President Sheinbaum said her government has implemented measures to curb rising commodity prices, specifically in energy. While Mexico produces most of its energy requirements, its oil production and energy revenue remain vulnerable to global market volatility, as oil continues to be affected by the conflict between the US and Iran.
“If we were not intervening to support the price of gasoline and diesel, gasoline would be over 30 pesos per liter, and diesel would be around 32 or 33 pesos per liter,” Sheinbaum said.
Citing that oil prices had reached $103 per barrel, Sheinbaum said her government has capped gasoline prices through fiscal policy, since prices are set internationally.
To ensure a fixed price of 24 Mexican pesos (around $1.50), Sheinbaum’s administration has removed taxes on regular gasoline, thereby sacrificing fuel tax revenue while maintaining stable prices despite volatility.
Sheinbaum added that inflation has risen in food items such as tomatoes and beef, and that she will hold meetings with gas producers and industrialists to ensure producers are not taking advantage of the current geopolitical environment to engage in price gouging.
“There may be reasons – let’s say temporary ones – why the price of one product is higher than another, but no one should take advantage of the current fuel price situation. No one,” she added.
The war involving Iran, the US, and Israel has driven global oil prices sharply higher, as the Strait of Hormuz – through which 20% of the world’s oil passes – remains under Iran’s control. As negotiations faltered, President Donald Trump has vowed to blockade the strait to force Iran back to the negotiating table.
At her briefing, Sheinbaum lamented the breakdown of weekend peace talks in Islamabad. “Unfortunately, that did not happen. There were talks between Iran and the United States, but they did not reach an agreement.
“Mexico’s foreign policy is an example to the world, and we follow it to the letter: the defense of peoples’ self-determination, non-intervention, and the peaceful resolution of any conflict. That will always be our position,” Sheinbaum said.
