# Running on Empty ??!!!!!



## cscscs007 (Jan 8, 2011)

I have been watching the problems around San Luis Potosi with gas shortages, and here outside of Guadalajara I have only heard of one station running out. I am aware of all the mobile gas stations which operate in the open day after day in the same spots, but I do not buy gas from them even though they seems to always have fuel. Pemex, on the other hand seems to be having some difficulty, which I do not understand because according to Pemex the gas for them and the mobile gas stations come from the same pipeline, one legally, the other not so much. 

I am hesitant to go along with the idea of a gas shortage. It seems to be more reasonable to agree that Pemex would rather hold back fuel until Jan 1 to make a profit off of the increase in fuel prices.


----------



## Howler (Apr 22, 2013)

*Dang it!!*



cscscs007 said:


> I am hesitant to go along with the idea of a gas shortage. It seems to be more reasonable to agree that Pemex would rather hold back fuel until Jan 1 to make a profit off of the increase in fuel prices.


  Make sense to me... just as we're getting ready for our trip to drive down there in January & February! :car:


----------



## joaquinx (Jul 3, 2010)

cscscs007 said:


> I am hesitant to go along with the idea of a gas shortage. It seems to be more reasonable to agree that Pemex would rather hold back fuel until Jan 1 to make a profit off of the increase in fuel prices.


Maybe not Pemex, but the stations who have bought gas at a lower price will be able to sell it next year at the higher price. Either way, I believe the shortage isn't real, but we will have to wait until January 1st to know for sure.


----------



## joaquinx (Jul 3, 2010)

I will admit that this will not effect me greatly. I own a 2009 model car that gets 14 km to the liter and has 21k kms on the odometer. I spend roughly 200 mxn per month for premium.


----------



## Gatos (Aug 16, 2016)

Currently we put about 600 pesos/two weeks into our older 'Magna' vehicle. Our 2016 'Premium' vehicle only has about 900 kms on it (since March). But we do often 'go into town' without really planning ahead - we may have to rethink some of those trips.

I guess that will probably mean that the cost of most things is likely to rise by 20% in 2017. Bus trips / shipping costs / taxis / groceries etc. Might have to look into UDIBONOS (linked to inflation).

So they are calling this 'fuel-price liberalization'. And supposedly will lead to non-Pemex branded stations. We haven't seen any of those yet.


----------



## Orfin (Sep 26, 2016)

I put less than 150 miles on my car in December. Have no idea what is going on around gas stations since last time i refueled.
Price of oil is going back up but seems peso value is still low.
Seems they are going to get some of that currency value back from me at the pump eventually but i only drive to keep the battery from going dead or rare occasion i have to go far or offer a ride to friends or split a trip with them. 
I wouldn't mind at all just getting a littke battery charger/maintainer and running it out to the car every few days.
Maybe then i can get down to 30 miles of driving a month on a tank that lasts 300miles.
VIVA MEXICO! I saw a donkey in a yard last week and stopped to photo with it and regulary take my fruit and veggie scraps to the neighbors horses. 

They love me so right by now, i doubt they would buck against parking it at my place in the drive way. Real horse power.

Who needs a car even though i have one. I walk right by it most days forgetting it's even mine. Its just there for the trip back across the border when spring comes.


----------



## Gatos (Aug 16, 2016)

Went into town this morning for breakfast/groceries. The lines at the Pemex stations were the longest they have ever been - perhaps 10 cars deep...


----------



## Howler (Apr 22, 2013)

Gatos said:


> Went into town this morning for breakfast/groceries. The lines at the Pemex stations were the longest they have ever been - perhaps 10 cars deep...


I'm hoping that will calm down some by the time we get down there (20 Jan to 20 Feb)... such scenarios reminiscent of the US in the early 70s could really complicate our trip. Also, I can't help but feel for the people there as the peso sinks in value only to see prices go up because of this hike in gas prices. Will this cause the peso to further devaluate against the dollar?


----------



## Gatos (Aug 16, 2016)

Howler said:


> I'm hoping that will calm down some by the time we get down there (20 Jan to 20 Feb)... such scenarios reminiscent of the US in the early 70s could really complicate our trip. Also, I can't help but feel for the people there as the peso sinks in value only to see prices go up because of this hike in gas prices. Will this cause the peso to further devaluate against the dollar?


Yes - I remember the days of those long gas lines in the US. At the time I happened to have a 'friend' who would let me fill up outside the normal hours to avoid the lines - sometimes anyway.

The peso seems to have settled down some. I _think_ most people really aren't affected by the dollar/peso valuations unless they shop at a big box store which pulls its stuff from the US (Costco,Walmart,Home Depot). 

There are a lot of very smart people in power in Mexico - say Carstens - I can't understand why they can't make Pemex work. They have the oil, they have cheaper labor. Why do they need to import a drop of refined gas from the US ? I don't get it.


----------



## joaquinx (Jul 3, 2010)

Pemex exports some oil to the refineries that they own in Texas, refine the oil and import it back. Plus, they buy refined gas because they lack enough refineries here. PEMEX is not known for reinvestment of profits as most of the profits go to other government programs. Pemex is a part of PRI, just like the teachers union and other unions.


----------



## Gatos (Aug 16, 2016)

We are talking Mexico here. These people can build anything, better and faster, when they want to. How long can it take to build a refinery (or two) ?

I don't know what 'new' relationships have developed with the 'opening up' of the Mexican petroleum industry - but why aren't those external companies building refineries here in Mexico and opening their own gas stations ?


----------



## Bobbyb (Mar 9, 2014)

Pemex is not only inefficient it is corrupt with a criminal union. For years the Gov. used Pemex as their own private bank. Nothing much has changed. They sucked all the profits out of the company. Nothing was reinvested.


----------



## joaquinx (Jul 3, 2010)

Gatos said:


> . How long can it take to build a refinery (or two)?


Without money, forever.


----------



## Gatos (Aug 16, 2016)

joaquinx said:


> Without money, forever.


Pemex issues bonds - in fact we own some. They pay a decent return.


----------



## Perrier (Dec 18, 2016)

Just drove from PVR to Sayulita. Every Pemex station was closed and this was at 3PM?

There were about twenty buses parked at the Sayulita Pemex probably waiting for them to open tomorrow. Not sure if there were passengers on the buses.


----------



## surabi (Jan 1, 2017)

The buses are parked at the Pemex because they are charter buses that bring busloads of Mexican tourists to Sayulita for the holidays and then after the holidays, they all go back on the bus and go home. That has nothing to do with the gas outages, which have been a real drag.


----------



## Howler (Apr 22, 2013)

Perrier said:


> Just drove from PVR to Sayulita. Every Pemex station was closed and this was at 3PM?
> 
> There were about twenty buses parked at the Sayulita Pemex probably waiting for them to open tomorrow. Not sure if there were passengers on the buses.


¡Híjole! :doh: :eek2: :frown: :shocked:


----------



## DiverSailor123 (Sep 17, 2016)

Please explain?


joaquinx said:


> . Pemex is a part of PRI, just like the teachers union and other unions.


With Pemex being Gov. owned and operated how is it they are controlled by one political party? Bobbyb implied issues concerning the petroleum workers as well?


----------



## TundraGreen (Jul 15, 2010)

Gatos said:


> Yes - I remember the days of those long gas lines in the US. At the time I happened to have a 'friend' who would let me fill up outside the normal hours to avoid the lines - sometimes anyway.
> 
> The peso seems to have settled down some. I _think_ most people really aren't affected by the dollar/peso valuations unless they shop at a big box store which pulls its stuff from the US (Costco,Walmart,Home Depot).
> 
> There are a lot of very smart people in power in Mexico - say Carstens - I can't understand why they can't make Pemex work. They have the oil, they have cheaper labor. Why do they need to import a drop of refined gas from the US ? I don't get it.


As I understand it, income from Pemex has gone to support the government. Little or not enough has gone into investment in new technology. As oil fields age, production goes down. The big oil companies have developed and implemented methods to improve production, e.g. hydrofracking. But Pemex has not kept up with the technology. The combination of the declining production of Mexico's oil fields and the current depressed price of oil combine to be a big hit on Mexico's income from oil. One solution is for Pemex to partner with outside oil companies for the new technology. This has been an unpopular solution in Mexico because many Mexicans feel like they are giving a national resource to others, so politicians have been reluctant to allow any outsiders in. But Nieto's administration has begun to implement it anyway.


----------



## DiverSailor123 (Sep 17, 2016)

It has to be difficult times for Mexico.. Pemex profit margin has stayed pretty steady but volume is no doubt down.. The Peso is hovering around 20-1.. Money wired from the USA by Mexicans is at a low point .. They May have saved little to no money to address technologic depravities... Mexico could be looking at a lot of returning workers and faced with the same issues that caused those workers to leave in the first place... just for starts .... This could work into a perfect economical storm...


----------



## cscscs007 (Jan 8, 2011)

The New Year has come and gone.....thankfully. Before the New Year gas stations where I live were restricting gas purchases to 300 and 500 pesos per customer. This is no longer being enforced and you can fill the gas tank. 

Is anyone else still finding gas restrictions?


----------



## Gatos (Aug 16, 2016)

We topped off the car (premium 17.70) yesterday morning at around 9AM. There wasn't another car at the pumps - yet there were four attendants on duty. Is it true that those attendants receive no salary of any sort ? They said Saturday was crazy and that people were filling up just about any container that could hold gas.

Isn't this an election year in Mexico ? Seems a little crazy to come up with such an unpopular thing during an election year. And - it really doesn't affect us as much as some since we are not commuters - but why a 20% increase _now_ through February or so and THEN let the price fluctuate on market conditions ?


----------



## AlanMexicali (Jun 1, 2011)

Social media sites have requested people not buy gasoline on January 1st, 2nd, or 3 rd. as a protest to the rise in gasoline prices. Yesterday we we out quite a bit and most Pemex stations were open and I only saw taxis at the pumps.

As a form of protest to gasoline prices rising some freeways in CDMX and other cities were blockaded yesterday.

Pemex attendants are paid, have IMSS paid by thier employers and usually get small tips for filling your tank, washing windows, checking air, oil levels etc.. 

TIP: Don´t let them add anything without first getting out and checking it yourself. They will add a liter of oil, add brake fluid, add transmission fluid, add antifreeze, add air etc. when it doesn´t need it hoping for a bigger tip and damage your vehicle.


----------



## Howler (Apr 22, 2013)

*They're Playing "the Game"*



cscscs007 said:


> The New Year has come and gone.....thankfully. Before the New Year gas stations where I live were restricting gas purchases to 300 and 500 pesos per customer. This is no longer being enforced and you can fill the gas tank.
> 
> Is anyone else still finding gas restrictions?


While people were trying to get cheaper gas, the station managers were probably hoarding it to sell at the higher prices in order to maximize their personal profit. Now that the increased prices are in effect it's "come one, come all!". Protests? They know that sooner or later everyone will need gasoline or diesel. 

It's not often that an opportunity has come along like this where the expected price hike was announced ahead of time - and when. Once the prices go truly market level & competitive, watch out for severe gouging whenever future conditions are right for it...!


----------



## Gatos (Aug 16, 2016)

We passed by a Pemex station today and on a nearby wall - in Pemex corporate colors - was a brand new banner on the wall (perhaps 6' X 8') saying - Dear customers. Please don't blame us, the Pemex employees, for the recent price increase. We don't want any more price increases either (now I am paraphrasing). The sign was VERY professionally prepared (as in from a printer).

We have two local businesses where we are regular customers. Every January we go to one place and ask them to pull the tires and service the brakes, do an alignment etc. They charge peanuts. The other is our regular mechanic where we have the oil changed twice a year, fluids changed etc. I say this because I would never let someone from Pemex do anything other than fill the tank or wash the windows.

As for air in the tires - we have nitrofil in our tires and Costco keeps them up for free...


----------

