Profeco Launches Campaign to Call Out Gas Stations with High Prices

Starting next week, the Federal Consumer Attorney's Office (Profeco) will not only release the report "Who’s Who in Gasoline Prices," but will also hang banners at gas stations that charge high prices, aiming to inform consumers.

Profeco in the Eye of the Storm

Profeco is in a delicate situation. Placing banners that label gas stations as having "high prices" not only seems beyond its authority, but also poses a risk to free competition and market neutrality. In a country where fuel prices are determined by the free market, this...

“Beginning next week, in addition to calling out gas stations with unfair prices during press conferences, we will go in person to hang banners to warn consumers that ‘they shouldn’t fill up here,’ because the prices are excessive,” stated Iván Escalante, the head of Profeco, during the press conference. The banners will feature an “X” with the message “Don’t fill up here, they’re overcharging.” “The cost of gasoline—which we will continue to review in the ‘Who’s Who in Prices’ report every Monday—should be between 23 and 24 pesos, a reasonable margin that includes the IEPS (Special Tax on Production and Services) and other taxes. However, some gas stations are selling it for 28 pesos for regular gasoline, or even 29, which can no longer be justified,” explained President Claudia Sheinbaum from the National Palace. Regarding the gas station campaign, José Mario de la Garza, president of the civil association Justice and Equity, expressed on X that “Profeco is getting into trouble,” as putting up banners at service stations exceeds its powers and undermines competition and market neutrality. “In a country where fuels should be governed by the free market, this action is a clear attempt to manipulate public opinion and harm private companies,” he emphasized.

Comment: This action by Profeco, while aiming to protect consumers, could create an atmosphere of distrust among fuel suppliers and affect their flexibility in an already complicated market. It’s essential for the government and regulatory institutions to maintain a balance between price monitoring and promoting a competitive environment that benefits both consumers and businesses.