Mexico gasoline, diesel output gains

Corrects independent gasoline import total in 8th paragraph.

Gasoline production in Mexico inched up 0.4pc to 306,000 b/d in February compared with the previous month, but was still down 24pc year on year, according to state-run Pemex's latest monthly output data.

Diesel production was at 193,200 b/d, a 21pc increase compared with January but still 24pc below February 2016 levels.

Jet fuel output fell by 6pc in February to 44,300 b/d, and 13.6pc less than a year ago.

Pemex's statistics released on Friday confirm a declining trend in fuel production, as Mexico increasingly relies on imports from the neighboring US.

Although gasoline imports (which include MTBE) fell 6.7pc in February compared with January, they rose 16pc year on year.

Diesel imports reached 264,600 b/d last month, 12pc more than in January and 126pc more than a year ago.

According to a separate monthly fuel report published by the energy secretary, in January (the latest available data), Pemex's imports came mostly from the US (92.8pc), followed by Portugal (2.8pc), Trinidad and Tobago (1.3pc), Lithuania (0.9pc), Spain and Belgium (around 0.7 pc), and Panama (0.5pc).

A still small amount of independent imports — the result of a sweeping 2014 energy reform that ended Pemex's long-held monopoly — reached 8,000 bl in January, 20pc less than in December 2016. All independent imports came from the US, according to the energy secretary report.

After reaching historic lows in December 2016, crude processing at Pemex's six domestic refineries is slowly recovering, reaching 930,433 b/d in February, up 1.6pc from January but still 12.8pc below February 2016 levels.

The 190,000 b/d Madero refinery was still producing far below full capacity last month at 63,409 b/d, 22.8pc less than in January.

Pemex executives vowed to end chronic downstream losses, which amount to 100bn pesos ($5.3bn), by the end of 2021, outsourcing the supply of auxiliary services and finding private-sector partners to upgrade ageing refineries.