Gas Shortage

My friend just went to fill my car and the station on the libramiento filed my small car, but are now starting to limit the amount you can put in. He got his car and was running out to get some in his jeep so I did not get the full details.

This problem will likely miraculously go away on January 1.

ferret wrote:Or they're stashing it...like the recent shootout in San Juan Cosala? The property was lined with containers containing fuel. Guess they're capable of stealing but don't know that gas loses its efficiency quite quickly when stored.

They would need some mighty large storage tanks if they are stealing enough to cause statewide shortages. I'm with Ezzie. This problem will disappear next week. Do they only steal gasoline at year end? Why don't we have this problem throughout the year? Pemex scam I say.

My theory is - most of the gas stations that are reporting shortages or not selling gas are independent retailers. They are doing this to get a nice payday the first week of January. They probably filled their underground tanks last week and paid for the gas at the low prices. Now they will just sit on their inventory until the new prices come into effect on Jan. 1 - then sell the old inventory to realize a higher margin.

As I said - just my theory - but if I were in the gas business and had little personal integrity, I'd do it!!

I would think there is a small hoarding going on and some people fill more often or top off to save some money and that is causing an artificial shortage that will go away when the price is up.. I hope it is the problem..

price of gasoline will go up Jan 4th.....then again in february

Ezzie wrote:My theory is - most of the gas stations that are reporting shortages or not selling gas are independent retailers.  They are doing this to get a nice payday the first week of January.  They probably filled their underground tanks last week and paid for the gas at the low prices.  Now they will just sit on their inventory until the new prices come into effect on Jan. 1 - then sell the old inventory to realize a higher margin.

As I said - just my theory - but if I were in the gas business and had little personal integrity, I'd do it!!

All stations are independent franchises.

Someone asked why I was amazed.....I am amazed by the number of people who post on here without having a clue what they are talking about..

FACT .. At 11am on the 25th the Pemex at Aldama would sell you as much gas as you wanted both grades.. In this area there is an outage not a shortage partly due to the increased traffic for the holiday and gringos running to top up there tanks..
At 1pm today the gas stations west of Ajijic appear to be open.. The one at the corner of Aldama is open... I saw two tankers going west around 9 am today..

I was close to empty today. Lots of people waiting for gas. I heard the attendant tell a woman that he only had premium at one of the pumps. thought that was odd, but didn't know there was a shortage. Well I have a full tank.

Telso wrote:Someone asked  why I was amazed.....I am amazed  by the number of people who post on here  without having a clue what they are talking about..
 

Yeah no kidding.........

Scams, the people pay for incompetence, oil half of what it was 10 years ago and gas doubling?

I agree sounds like someone is talking about something they know nothing about alright!!!

Pemex in Riberas was selling both grades when I filled up at 6PM Wed. + or -.  SAT appeared to have the pumps blocked.

Having owned a gas station back in the late 80's early 90's I can say that the retail sale of gasoline is more complicated than people here realize. In Canada the difference between the wholesale price and the price at the pump is about 3 cents +- per litre. The contracting supplier (Shell, Esso etc) sets the wholesale price and allows a retailer to add up to the allowed margin (3 cents +-) to the pump price. By contract the supplier usually rents the forecourt of the station and supplies the pumps, tanks and all connections. Yes they pay a monthly rent based on sales volume.
Any argument with a gas rep about margin will be met with the reply that you turn your inventory at least 2x per week so get used to it.
Changes in wholesale price depend on whether or not the price goes up or down. If the price goes up then the pump price will go up almost immediately because the retailer will have pay the increased wholesale price on the next delivery. ( gas is COD) and beside the cost of gas the retailer has to pay all his other expenses like utilities, wages etc from his very small margin. It takes a lot of cost control effort to even break even. With about $3 million in gas sales my margin at the pump was less than $80,000.00 which almost all went to pay the gas jockeys, utilities, snow plowing  and other outside maintenance. plus I lost 2% on credit card sales.
If the price goes down then the retailer will hold his price as long as other local retailers and comply with price changes in that market.
I expect that here in Mexico with the supplier (Pemex) owning the station the situation is much the same and the retail price of gas is controlled by the supplier by way of the allowed margin between wholesale and retail prices
Here in Mexico the price only goes up. The retailer must comply with his supplier's pricing (Pemex) and I expect he is not allowed to increase his pump prices before a publicly announced price change is to take effect. However he has the pay the new wholesale price for his next load (COD) so I don't blame him if he "runs out of gas" for few days before the increase to protect his pocket.
Retailing gas be it in Canada, the USA or Mexico is a very tricky financial business.  It is only the wholesalers who make money. Retailer is at the mercy of the wholesalers

Intercasa wrote:Scams, the people pay for incompetence, oil half of what it was 10 years ago and gas doubling?  

Any suggestions as to a solution?

Unless they tar and feather the bad guys, remember them and their families and never allow them to work again and keep accepting bribes and looking the other way until it affects them nothing will change.

Ah, Spencer, thank you for the reality check. I am 11 years here, one never sees it all, but I have seen a lot. Life in Mexico is an adventure--if one has has the guts to survive! IMO people who want to retire in paradise with no problems should try another place.

DaveP wrote:
I expect that here in Mexico with the supplier (Pemex) owning the station the situation is much the same and the retail price of gas is controlled by the supplier  by way of the allowed margin between wholesale and retail prices
Here in Mexico the price only goes up. The retailer must comply with his supplier's pricing (Pemex) and I expect he is not allowed to increase his pump prices before a publicly announced price change is to take effect.

Pemex doesn't own the stations. They are privately owned franchises. The government, not Pemex, has set the retail price for decades. This will begin to change on Jan. 1 when the price of gasoline will gradually be free to follow the market. Supposedly on Jan 1, 2018 prices will be completely free of any government control. And foreign oil companies will be allowed to import and sell both wholesale and retail.

This creates a sense of deja vu about the whole privatization of state-owned companies during Salinas' presidency. The oligarchy now, (made up of former high ranking government and Pemex officials along with super wealthy investors), just like back during Salinas big sell off (Telmex is a prime example) is already lined up to take over the oil industry here.

It was a madhouse in Chapala. Not a station open from Ajijic to the one near Soriana, and tempers were short.

Being the dumb-shit I can sometimes be, when I left Ajijic, I was at 1/16th. of a tank; running on fumes. I waited about 1/2 hour and got a full tank. On the way home (Chapala Haciendas), even the station between Soriana and my place was closed.

I got a full tank.

Makes me happy I have an ATV with a full tank, and five gallons in a red plastic gas can in my bodega (runs the generator when power is out).

Learned my lesson again: Don't let it go below half.

Cause? Just like the Kennedy assassination and the Bermuda Triangle, we probably will never really know the "truth," if in fact there is a single "truth."

I give odds to Pemex creating the "shortage" for a price increase.

ferret wrote:Or they're stashing it...like the recent shootout in San Juan Cosala? The property was lined with containers containing fuel. Guess they're capable of stealing but don't know that gas loses its efficiency quite quickly when stored.

Ferret what shoot out in San Juan Cosala? I didn't hear about that and I live there.

The story is now that the cartels have threatened the gas stations and that's why Pemex has not delivered.

gvprod wrote:price of gasoline will go up Jan 4th.....then again in february

https://www.washingtonpost.com/news/worldviews/wp/2017/01/01/mexicans-are-outraged-over-a-big-hike-in-gas-prices-on-jan-1/