Mexico's petroleum industry is wholly government owned. "Petroleos Mexicanos" (PEMEX for short) manufactures, distributes and sells motor fuels and lubricants, within a state owned monopoly. It might surprise you to learn that Mexico now imports about two-thirds of its gasoline from the USA. Almost all gasoline sold in the northern half of the country is US refined fuel. Gasoline stations (referred to, as "gasolineras" are extremely common. They are franchise operations, with the franchisee providing the land the electricity and the manpower to operate the station. Some of the newest PEMEX superstations in central Mexico have integral mini-marts, car wash, and lube and oil changing facilities. Two grades of gasoline are sold in Mexico Regular and Premium: Mexican gasoline does not use the controversial MTBE additive. No Mexican automotive gasoline contains even the slightest trace of lead additive. Mexican aviation gasoline will not be dispensed to anyone not possessing a valid aircraft manifest (there goes your plans to fuel up that ultra-high compression dune buggy).

MAGNASIN Gasoline

Magnasin is Mexico's unleaded regular gasoline. It is sold from a bright green pump. Its octane level is realistically somewhere around 88 (It is superior to the silver pump unleaded "Extra" which it replaced in 1990). Most vehicles will run acceptably on "Magna" (as it's popularly called in Mexico). However, some very heavily laden motor homes and towing vehicles may benefit from a higher-octane fuel. Generally if an automobile requires the use of premium US gasoline, then it will require Mexico's premium gasoline.

PREMIUM Gasoline

Mexico's newest gasoline, is also its best effort to date. As of mid-2004, Pemex Premium gasoline can be found at most every highway "gasolinera", and only out-of-the-way stations are missing this fuel which is dispensed from a bright red pump. Premium grade fuel compares favorably to US premium grade gasoline that advertises 92-octane performance.

MEXICAN Diesel

Mexican diesel fuel used to be so cheap that big freight trucks could haul their load from the border with Guatemala to the US border for under a hundred dollars. Even through the cost has multiplied ten-fold to a dollar seventy cents per gallon in 2004, diesel fuel continues to be a bargain, especially in comparison to Mexican gasoline, which costs slightly more than gasoline sold in the United States (even by mid-2004 standards).

In 1990, Mexico reformulated its one single grade of diesel (No. 2) to have one-half of the sulfur content of the earlier fuel. While the new formulation has more sulfur content than comparative fuels sold in the USA, most experts agree that Mexico's fuel is better ad far as lubricity is concerned. Mexico's diesel is pretty much similar to diesel fuel sold in the US in the 1960's. It is not unusual to expect a ten percent gain in fuel mileage with Pemex diesel fuel.

Contaminated diesel fuel was a big issue until the turn of the century. While not entirely resolved, independent bulk transportation companies have pretty much "cleaned up their act" due to pressure brought by Pemex. I always travel with three or four spare filters "just in case". If your plans include residing for longer than a few weeks on a tropical beach, you might want to consider bringing "biocide" fuel treatment. Scum producing organisms can develop in fuel tanks when there is humidity present with warm temperatures. I keep my tanks topped off to minimize condensation.


The Price Of Pemex Gasoline And Diesel

As was pointed out in the first paragraph, Pemex is a government monopoly. As such, Pemex sets the price of its products with no regard to having a competitive spirit (there is no competition). Prices for fuel around the country are uniform with the exception of within ten miles of the US border. There, prices are several pesos cheaper per liter to keep Mexican stations competitive with nearby US stations. The Mexican Government treats the sale of Pemex products as yet another source of tax revenue. Even though the standard of living is less in Mexico and the minimum wage is a paltry fraction of US standards, Pemex gasoline and diesel cost more than similar products in the US. In peso terms the price of fuel in Mexico has historically never decreased — any increase is permanent. Keep in mind however, that the cost of the peso with US dollars generally decreases over time. Gasoline and diesel fuel prices are higher in peso terms than they were a couple of years ago, but because of continuing devaluation of the peso; the cost in dollar terms is slightly less.

Cash Only

For all intents and purposes you can count on paying cash at the pump. And it is important to keep in mind that outside of the immediate border area, most stations will refuse to take US Dollars, or they can impose such a punitive peso/dollar exchange rate that the fuel may cost up to twenty percent more than it would if you use pesos! A new credit card payment system has been instituted in urban Pemex stations (remember in Mexico to refer to them as gasolineras). However a high service fee makes payment with a credit card a bit of a splurge (more than three dollars a transaction).

Rip Offs

Sadly the employees in some stations will attempt to cheat customers. This is true whether the customer is Mexican or foreigner. The rip-off happens in one of two areas:

1. The quantity of fuel actually pumped

2. Changed tendered for a given purchase

Here's How They Can Cheat On Quantity:

1. After a prior sale, the attendant will not zero the pump before he sticks the nozzle into your tank. There might be as much as ten or twenty dollars worth of fuel displayed on the pump as your tank just begins to fill. Naturally if you tell the attendant to fill your tank, you are going to end up paying for more fuel than your tank can hold. Get out of your rig and observe that your transaction is starting with all zeros on the pump. Locking fuel caps insure that nothing takes place until you are at the pump with your gas key in hand.

2. Fraud in the form of inaccurate pumps has plagued the motoring public for decades. There isn't much you can do about this except to talk to your neighbors in Mexico and listen to their advice. The amount of "error" in the pump can range from a fraction more than zero all the way up to eight percent or so. Pemex seems to put up with this practice because the minority of station owners who monkey with their pumps claim that their franchise profits are far too low. Save your breath, complaining will not do a bit of good.

Here's How The Can Cheat When Tending Change

1. Let's say you owe seven hundred and forty five pesos for a transaction. You hand the attendant a U.S. hundred-dollar bill. He peels off two hundred and twenty pesos in banknotes and hands it to you, and stuffs this bankroll back into his pocket (very few stations have separate cashiers). Is two hundred pesos change, the correct amount? What is the exchange rate for dollars to pesos in this station? Do you have a calculator? Do you know how to use it? Veteran Mexico RV'ers never use dollars to pay for gasoline (or anything else). Determining the correct peso change for a dollar used in payment is just too much of a hassle.

2. As an example let's assume that you hand over a pair of five hundred peso notes to pay for six hundred and sixty pesos worth of fuel. The attendant counts backward (instead of forward) when peeling off small banknotes. Suddenly he stops and smiles. If you immediately pocket the change, he will pocket his roll of banknotes. You might be short any number of pesos. If you smile back knowing his change count is short; he is likely to suddenly continue as if he was pondering the fate of mankind. Carry a calculator and use it. Be aware that the peso has undergone numerous changes in the last twenty years and obsolete notes and coins are worthless. A current five hundred-peso banknote is worth more than forty US dollars while a completely different looking obsolete (1980's era) 500-peso banknote is worthless. Mexican coins in denominations worth greater than US ten-cents are two-tone brass and nickel, ascending in diameter from about a nickel to the US silver-dollar size 50 peso coin (not seen too much but still legal Mexican tender).

Important Note: An overwhelming percentage of gasolinera workers are honest. Rather than stand around and glare at them, I post a patient smile on my face while I wait by the pump or meticulously count my change. Because of my age I can also claim that I do not have my glasses with me. It makes little sense to act accusatory toward the innocent. This would probably discourage them to stoop to doing what they are accused of. Friendly and helpful attendants should be rewarded with five to ten pesos if they should answer some questions about the neighborhood, wash the windows, or check the liquids under the hood.

Availability Of US Brand Motor Oil In Mexico

Unless you are strapped for room, it's easiest to carry sufficient lube oil from home to last you through your journey. A variety if brands and grades are available in Mexico although your choice may be hard to find. Mexicans love heavy grades of oil. It is not unusual to find lots of fifty-weight and forty-weight single grade oil, less 20W-50 and little if any 10W-40 multi grades and no 5W-30. Very little synthetic oil will be found except perhaps isolated stores in the very largest cities. Two-stroke motor oil is extremely common in towns and seacoast villages.

For diesel owners Delo 400 15W-40 oil can be found in one of about twenty COSTCO warehouses (your US Costco membership card is valid in Mexico. But not the charge account part of the Executive Membership card). The warehouses can be found in most state capitols. But outside of Costco, Delo lube oils are scarce. Union 76 fleet-gard can sometimes be found in heavier single grades, but Shell Rotella T oil in any grade is scarce.

A Note About Oil Filters: Mexican oil filters with the brand name "Ghoner" are of good quality. Owners of diesels will definitely want to bring oil and fuel filters from home.

A Note About Mexican Batteries: I always keep in mind the fact that I once sold LTH Mexican-made batteries in the mid 1990's (in southern California). Thousands of LTH batteries were sold, and there were less than three warranties in a total of six years. LTH brand, are available in a limited number of BCI automotive sizes and amperages. LTH truck sizes are common. Diesel pickup batteries are scarce, and expensive. Last winter I paid one hundred dollars for a dual terminal 34/78 battery for my diesel pickup and I was grateful when I eventually found one. It has a two-year flat exchange policy (if I could ever find a "Bosch" battery dealer).

Deep cycle or Golf Car batteries are non-existent. Mexican golf courses have gasoline-powered cars.

Both Mexican and American Costco store supervisors claim that their "Energizer" brand of batteries can be warranted in either country. Keep in mind that I have never seen deep-cycle Energizers in Mexico (Mexico Costco does not stock Optima batteries).

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