Synopsis


The Mexican federal government has strengthened its strategy to benefit the internal market of production of petroleum products, especially gasoline and diesel. However, in its effort to achieve this, it is generating long-term negative externalities in the economy, environment, and most hazardously, people’s health.

This happens because by increasing the production of petroleum products, the production of fuel oil increases. This is a highly polluting residue from the same refining process, which can flood the domestic market. For this, the Ministry of Energy tries to ensure that CFE absorbs the monopsony of said fuel without losing its market share since the marginal costs for its use are incremental.