LP Gas increases in areas of the country up to 53.5% in the yearBy Elliot Bullman
The total liberation of the market since January of this year has caused a regional differentiation, according to the CRE
Between December last year and November 2017, consumer prices for liquefied petroleum gas (LP) have increased by upto 53.5%, reaching 21.7 pesos per kilo, according to the statistics of the Energy Regulatory Commission (CRE).
This rise has been caused by internal factors such as increases in the price of raw materials, the lack of availability of wholesale transport logistics and the still small number of distributors in the country.
The total privatisation of the LP gas market since January caused a wide regional differentiation between the highest and the lowest pricing levels. In some regions of the country LP gas costs between 15.71 and 17.11 pesos per kilogram and in others the range is between 19.11 to nothing less than 21.70 pesos per kilogram.
Among the regions that had the highest increases are Baja California Sur, which is the worst connected zone in the country in terms of logistics.
Campeche does not have distributors and all the gas travels in via other states. Tamaulipas has high security costs, Michoacán and the central Pacific have no access to the Manzanillo terminal owned by Zeta Gas and some points in the Valley of Mexico face distortions among competitors.
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