Mexico fuel prices

[gopbroek]

The price of fuel is expected to spike upwards after January 1st.
Mexico gasoline prices to rise as much as 20.1 percent in January: government
This cannot be good as fuel is one of the major expenses for the dive operations. In addition this will probably push inflation across the board for everything else in Mexico.

 

[fishi]

So in the end the strong dollar really isn't going to work out in the US tourists benefit. If the dollar falls Mexico isn't necessarily going to reduce prices. I guess "money illusion" applies everywhere and there's no way to get away from it.

 

[cvchief]

Check the story. QR doesn't get hit with it until Dec 2018, I think.

 

[Dave Dillehay]

As best I know, the government will merely stop "setting" the fuel price (at a way too high price) and allow independent dealers to set their own price, with only a maximum stipulated. The hope is competition will drive the price down from a very high price in effect now. I doubt that will happen in Cozumel since the cost of transporting it is high, and there is bound to be collusion among the few dealers here and a ton of gas hungry dive boats!

Dave Dillehay
Aldora Divers

 

[k4kafka]

Today's NY Times front page article reads, " Pena Nieto Faces Unrest in Mexico as Gas Prices Climb"...
Looks like we might expect those taxi rates to increase again.
So,in prep for my next visit in April, I'm buying Mexican pesos @ 20+ to the U$ dollar at my local currency exchange.

 

[gopbroek]

Today's NY Times front page article reads, " Pena Nieto Faces Unrest in Mexico as Gas Prices Climb"...
Looks like we might expect those taxi rates to increase again.
So,in prep for my next visit in April, I'm buying Mexican pesos @ 20+ to the U$ dollar at my local currency exchange.

It's doubtful you can get a better rate than using a bank ATM on the island in April. As the Peso continues to slide against the USD the earlier you buy them the less they will be valued when you go to use them. The only reason to buy them early is if you're betting the USD is going to lose value against the Peso over the next three months. Using a Schwab ATM card I get 0.15 Pesos below the daily FOREX (Oanda) rate with no other fees on the island from the various bank ATM's (your bank, not the dispencing ATM sets the exchange rate). I have never heard of a money exchange or US bank offering a rate near this.

 

[k4kafka]

"The only reason to buy them early is if you're betting the USD is going to lose value against the Peso over the next three months."

So if the US dollar falls in value and is weaker against the Mex peso, that's a better deal for me ? I'm confused.

 

[gopbroek]

"The only reason to buy them early is if you're betting the USD is going to lose value against the Peso over the next three months."

So if the US dollar falls in value and is weaker against the Mex peso, that's a better deal for me ? I'm confused.

If you buy them today at 21.5 to 1 a hundred dollars gets you 2150 pesos. If the value of the USD were to drop to 18:1by April (weakening) then a hundred dollars would only get you 1800 pesos and buying them now would be a better deal.
Now if the value of the Dollar increases to say, 24:1, then that same hundred dollars would buy you 2400 pesos and you would be better off waiting till you actually get there.

The current wisdom is that the Peso will continue to weaken over the forceable future and if the Lefty's get control of the country in 2018 it could get much worse. Then again with my superior grasp of economics I will most likely die at work, dead broke.

 

[mikeycanuk]

I'm betting it only gets worse. I bought enough to get me ferry fare, food and cab fare to the villa next Dec with some left over just in case. The shuttle I use charges $60CDN or $60US (someone's getting a raw deal) so for the 3 of us it's not bad, I'll leave the bus to others.

 

[Christi]

The fuel Increase was scheduled to be incremental and hit different parts of the country at different times -Cozumel
Was scheduled to have a reprieve until
Late NEXT year. Unfortunately, that was not respected and our fuel prices increased by 22+% overnight!

So those who feel like they are getting ripped off by those charging a few extra bucks for nitrox - this fuel Increase is but one example of things you probably don't take into account - you may or may not see dive prices increase as this shakes out - but don't be surprised if they do.