Mexico renews fuel deal with gas stations to contain prices and inflation

Mexico has extended a voluntary agreement with fuel retailers aimed at preventing higher oil prices from feeding into inflation.

President Claudia Sheinbaum said the government formalized the six-month renewal at the National Palace with representatives of the fuel sector. The agreement will run through February 2027 under the National Strategy to Stabilize Regular Gasoline and Diesel Prices.

The arrangement keeps regular gasoline below 24 pesos, or about $1.41, per liter. Diesel will remain below 27 pesos, about $1.59, compared with the 28-peso reference level established in April during a period of rising international oil prices.

Sheinbaum said the renewal would help fight inflation and high living costs while supporting Mexican families. The government’s stated aim is to prevent higher fuel prices from passing through to other products and services.

The agreement is voluntary and does not set a mandatory maximum price for every service station. Prices can vary according to each station’s operating conditions, location and logistics costs. Border areas will generally have lower prices, in part because they qualify for an 8% value-added tax rate.

The regular gasoline strategy began in February 2025 and has been renewed periodically by the government and major fuel-sector representatives. Negotiations have also covered lower fees for card and electronic payments, simpler administrative procedures, action against illicit fuel markets and supply-chain improvements. The government additionally uses incentives tied to the Special Tax on Production and Services to cushion international price swings.

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We renewed the voluntary agreement with fuel retailers to combat inflation and high living costs in support of the economy and the well-being of Mexican families.