Mexico Says Fuel Pact Blocks US$6 Gasoline

MEXICO · ENERGY · FUEL PRICES

President Claudia Sheinbaum said on Monday 19 October 2026 that without Mexico’s fuel-price agreement with gas station owners and a fuel tax cut, regular gasoline would cost more than 30 pesos a litre (about US$6.14 a gallon) and diesel more than 35 pesos (about US$7.16 a gallon). She spoke at her daily news conference and pointed to price anger in other countries, a remark Mexican outlets tied to the riots in France.

For American drivers, expats and travellers in Mexico this is a statement about what fuel costs, because the price is steered by a voluntary pact and a weekly tax discount. The consumer agency Profeco puts regular gasoline at an average 23.69 pesos a litre (about US$4.85 a gallon), above the US$4.33 a gallon that US drivers paid on 12 October.

The comparison with France is the president’s own, not an official finding. The French government ties part of the street anger to the cost of living and fuel prices, but blames the worst violence on ultra-left groups and criminals.

What Sheinbaum Said

“The agreement we made with gas station owners and the subsidy we are giving on fuels is very important,” Sheinbaum said, in the Rio Times translation of her Spanish. She told reporters to look at the discontent over rising prices in various countries, while Mexico chose to lower the gasoline tax and strike a deal with all the gas station owners.

The presidency’s own transcript could not be opened from our servers, so these words come from SDP Noticias, Almomento and Tribuna, which carry the same wording. The quoted passage does not name France, but SDP Noticias and Almomento present it as a contrast with the French protests.

How the Pact and the Tax Relief Work

The pact is the National Strategy to Stabilise the Price of Regular Gasoline and Diesel, renewed for six months on Monday 31 August 2026, as we reported in our earlier report on the renewal. The Energy Ministry said it keeps regular gasoline below 24 pesos a litre (about US$4.91 a gallon) and diesel below 27 pesos (about US$5.53 a gallon), the broadcaster N+ reported.

The scheme is voluntary, so each station decides whether to join, and Profeco publishes which stations charge more or less than the agreed levels. Its report of 19 October, for 6 to 12 October and excluding the border strip, shows national averages of 23.69 pesos a litre for regular (about US$4.85 a gallon) and 26.98 pesos for diesel (about US$5.52 a gallon).

The second tool is a weekly discount on the federal fuel excise, known as IEPS, which the Finance Ministry sets by notice in the official gazette. For 17 to 23 October, Agreement 155/2026 gives regular gasoline a 59.48% discount worth 3.9852 pesos a litre (about US$0.22 a litre), down from 4.3091 pesos (about US$0.23 a litre) the week before.

Diesel keeps a 100% discount worth 7.3634 pesos a litre (about US$0.40 a litre) and an extra credit that more than doubles to 2.3533 pesos (about US$0.13 a litre). The notice lists rates only and does not say what the relief costs the treasury.

Do the President’s Fuel Price Figures Add Up?

We found no published calculation behind the two figures, so we tested them against the official numbers. Adding this week’s discount on regular (3.9852 pesos, about US$0.22 a litre) to the Profeco average of 23.69 pesos (about US$1.28 a litre) gives about 27.7 pesos (about US$1.50 a litre), short of 30.

The same sum for diesel, with the discount and the extra credit, gives about 36.7 pesos (about US$1.98 a litre), above 35. This is a rough Rio Times check, not an official calculation, because it leaves out sales tax on the discount and any effect of the pact itself, so the presidency’s own method may differ.

What Is Happening in France

On Saturday 17 October mass protests over the cost of living and fuel prices, joined by school students, turned violent in many French cities, with looting. President Emmanuel Macron said on Sunday 18 October that the Limoges town hall had been burned and several hundred police officers injured, and that the protesters’ worry about fuel prices traces to the Gulf conflict, in which France has taken no part.

He blamed the violence on ultra-left groups joined by many criminals, and on Monday 19 October Prime Minister Sébastien Lecornu asked prefects for partial, localised curfews, which franceinfo reported were announced that evening for parts of Paris, Lyon, Lille and Nice. Justice Minister Gérald Darmanin said on the TF1 channel that 2,513 people had been taken into police custody and 67 jailed so far.

What It Means for You

Drivers, expats and travellers in Mexico pay about US$4.85 a gallon for regular and US$5.52 for diesel, against a US average of US$4.33 and US$6.18 on 12 October, according to Profeco and the US Energy Information Administration. So regular costs more in Mexico than at the average US pump, while diesel costs less.

The pact is voluntary and the weekly relief on regular gasoline shrank this week, so a sharp rise in oil prices would test the 24-peso ceiling (about US$4.91 a gallon). Travellers heading to France should expect curfews in parts of Paris and Lyon, night curfews for minors in Lille and Nice, and a protest ban in parts of Paris, and should follow the local prefecture and embassy notices.

What Is Not Known

It is not known how the presidency reached the 30-peso and 35-peso figures, or what the discount costs in lost revenue. We also could not open the presidency’s transcript, so the exact wording, including whether she named France, rests on three press accounts.

The pact’s details beyond the headline ceilings reached us only through press accounts of the Energy Ministry statement. It is also unknown whether Mexico will renew the pact when its six months end, or whether the French unrest will spread.

Frequently Asked Questions

What did Sheinbaum say about Mexico’s fuel prices on 19 October?

She said that without the agreement with gas station owners and the fuel tax relief, regular gasoline would cost more than 30 pesos a litre (about US$6.14 a gallon) and diesel more than 35 pesos (about US$7.16 a gallon). The words come from press accounts of her morning news conference, because the presidency’s transcript could not be opened.

How much do Mexicans pay for gasoline now?

Profeco’s report for 6 to 12 October puts the national average at 23.69 pesos a litre for regular (about US$4.85 a gallon) and 26.98 pesos for diesel (about US$5.52 a gallon). Border areas, which have a lower sales tax, are excluded.

Is the Mexican fuel pact a legal price cap?

No, it is a voluntary agreement with reference ceilings of 24 pesos a litre for regular (about US$4.91 a gallon) and 27 pesos for diesel (about US$5.53 a gallon). Stations decide whether to join, and Profeco publishes which ones charge more.

What is happening in France?

Protests over the cost of living and fuel prices turned violent on Saturday 17 October, and curfews were announced for the evening of Monday 19 October in parts of Paris, Lyon, Lille and Nice. President Emmanuel Macron blamed ultra-left groups and criminals for the violence while saying the protesters’ worries are legitimate.

Do US drivers pay more or less than Mexicans for fuel?

US drivers paid an average US$4.33 a gallon for regular on 12 October, below the Mexican average of about US$4.85. For diesel the order is reversed, with US$6.18 a gallon in the United States against about US$5.52 in Mexico.

Sources: Finance Ministry (Hacienda), Agreement 155/2026, official gazette of 16 October 2026, Finance Ministry, Agreement 152/2026, official gazette of 9 October 2026, Profeco, Quién es Quién en los Precios de la Gasolina, 19 October 2026, US Energy Information Administration, weekly retail gasoline and diesel prices, 12 October 2026, Élysée, address of President Macron to the French, 18 October 2026, franceinfo, partial curfews in Paris, Lyon, Lille and Nice, 19 October 2026, franceinfo, Prime Minister Lecornu on curfews, 19 October 2026, Le Figaro, live coverage with Justice Minister Darmanin’s figures, 19 October 2026, Public Sénat, the 17 October movement, 15 October 2026, SDP Noticias, 19 October 2026, Almomento, 19 October 2026, Tribuna, 19 October 2026, N+, renewal of the fuel pact citing the Energy Ministry, 31 August 2026, Por Esto, fuel pact renewal, 31 August 2026. All retrieved 19 October 2026. Peso amounts are converted at 18.4930 pesos per US dollar, the Friday 16 October close, and one US gallon is 3.785 litres. The presidency’s transcript on gob.mx could not be opened.

Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error

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