Economics & Finance / Industry & Sectors / Energy & Resources

Mexico's 80-Year Oil Monopoly Ends: Why Gas Prices Won't Drop Anytime Soon

Lucas Davis, Shaun McRae, Enrique Seira Bejarano

Mexico spent 80 years with one state-owned oil company controlling every gas station. In 2017, they finally deregulated. But here's the shocker: prices aren't falling, and they might not for years. This video breaks down the economic reality behind the reform. We look at why retailers have almost no room to cut costs—their margins were fixed at 5% under Pemex. We reveal the dirty secret of those old stations: 68% had no convenience store, 53% had trash on the floor, and workers paid for the privilege of a job. We also explore the risk of price-fixing cartels using a government app to cheat consumers, and why new competition might actually raise prices in the short term. Based on research by Lucas Davis, Shaun McRae, and Enrique Seira Bejarano, this is the untold story of Mexico's oil market makeover.