Mexico's fuel price caps force small gas stations into financial crisis
Small Gas Station Owners Warn of Closures Amid Fuel Price Agreements
Independent gas station operators—those who own up to three service stations—are warning that their businesses could shut down due to the voluntary fuel pricing agreements announced by the federal government and major industry players.
In interviews with our outlet, they noted that under current laws, authorities could even seize or intervene in gas stations if they determine that fuel supply is at risk in regions or towns with only a single service station.
These small business owners say they feel unrepresented in government negotiations and argue that the agreement is allowing large corporate groups to dominate the market through economies of scale.
"Our main revenue came from regular gasoline, but they restricted it a year ago. Now they've cracked down on diesel," said Héctor Hernández, a Jalisco-based entrepreneur who owns a station along the Manzanillo–Puerto Vallarta highway. "In the meetings between big business and the government—which we're not invited to—they treat us as if we had the same power as Oxxo with its stations."
"We're reaching a breaking point. If I close, there's a law that says if I threaten supply in a small town, the government can step in and say, 'Hand it over.'"
According to the consultancy PetroIntelligence, Mexico has 14,257 gas stations nationwide, with 26% owned by 30 major companies such as Oxxo Gas, Petro Seven, Hidrosina, Grupo Orsan, Gazpro Estaciones, and Grupo ECO.
The rest are operated by mid-sized, small, or micro-entrepreneurs. In fact, 4,835 owners run just one station, accounting for 34% of all active permits.
Eduardo García, a gas station owner in Autlán de la Grana, Jalisco, explained that the fuel price caps have slashed profit margins and delayed expansion plans.
"Last week, President Claudia Sheinbaum Pardo warned that those who violate the voluntary agreement will face not only public shaming by the Federal Consumer Protection Agency but also audits by the Tax Administration Service (SAT) to verify whether their profit margins align with their reported costs—especially for fuel purchased from the state-owned Pemex."
"Staying in this business has become incredibly tough. On top of everything else, we're dealing with rising insecurity and heavy regulation that's hard to keep up with," García added. "For example, we just paid Pemex 400,000 pesos just for the franchise rights."
Alejandro Montúfar, director of PetroIntelligence, called the situation alarming, noting that some station owners are now losing money on every liter sold. Previously, gas stations earned between 1.80 and 2 pesos per liter.
"We've already seen stations in the Bajío region suspend sales. This will also stifle sector growth by discouraging investment if profitability keeps falling."
On Monday afternoon, industry representatives were set to meet with President Sheinbaum, who stated in her press conference that the goal was to further reduce diesel prices, which were capped at 28 pesos per liter last week.
"We've reached a very good agreement on gasoline. We're going to lower diesel prices even more, and we're working to reduce the cost of perishable goods as well," the president said.
To ease pressure on fuel prices, the government, banks, and fuel voucher companies announced Monday that they would eliminate card payment fees starting in May.
