Mexico's retail LPG price ceilings fell again this week to a record low since the government first capped rates in August.
The average maximum allowed retail price for LPG fell by 1.8pc, to Ps12.05/l ($2.29/USG), based on the 12-18 December ceilings set by the energy regulatory commission (CRE). The price cap average is now 13pc below the market-set average retail price of close to Ps13.88/l on 31 July, a day before the new policy was imposed.
The highest maximum price allowed of Ps13.68/l was in effect for several cities in the state of Zacatecas in central-western Mexico, where logistics make deliveries more difficult.
The lowest of the caps, Ps10.81/l, was for the second week in a row in several cities of the state of Hidalgo, in the central region. But the price ceiling was higher than last week's lowest limit in the state of Ps10.35/l.
Capping retail LPG prices and creating a state-owned distribution company have helped Mexico counter earlier steep international price increases, President Andres Manuel Lopez Obrador said earlier in December.
Prices for waterborne propane imports to Mexico's east coast, including freight, rose by 4.5pc to $1.09/USG on 10 December from 3 December. The impact of rising international prices could show effects in Mexico in coming weeks.
