Do More With Reuters
Partner Services

Mexico mulling buying fuel from far-off India

Wed Feb 13, 2008 3:50am IST
 
Email | Print | | Single Page
[-] Text [+]

By Catherine Bremer

MEXICO CITY (Reuters) - Mexico, a major oil exporter but an importer of refined fuel, is mulling buying gasoline from faraway India if prices there undercut costly U.S. refineries, state oil monopoly Pemex said on Tuesday.

Pemex will examine market conditions in the second half of the year, when India is expected to complete a new oil refinery that could take in Mexican crude and ship back refined fuel.

"It's being evaluated and it will depend on price levels," said Pemex spokesman Carlos Ramirez.

Dogged by a lack of capacity at its six refineries, Mexico has been a net fuel importer for several years and currently buys a hefty 40 percent of its fuel from U.S. refineries.

Pemex currently exports an average of 35,000 barrels per day (bpd) of crude across the Pacific Ocean to India.

Its trading arm believes shipping back Indian gasoline could prove cheaper than piping or trucking in fuel from the United States, which buys 80 percent of Mexico's exported oil.

Mexico recently stopped shipping oil to U.S. West coast refineries, a decision based on port infrastructure and costs. Pemex said at the time that it would ship crude to other markets where there were better economic alternatives.

Even if India proves a cheaper option, the process of exporting oil to overseas refineries only to buy back expensive refined fuel hurts Mexican industry and the government, which subsidizes gasoline for motorists.  Continued...

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India during the Reuters India Investment Summit in Mumbai and Bangalore.  Full Coverage | Blog 

Hugh Hefner
PLAYBOY SALE
An icon bows to changing times

With his Playboy Enterprises in talks to be sold for about $300 million, the 83 year-old Hugh Hefner will be giving up control over the iconic adult entertainment empire he founded that was instrumental in shaping society's opinions on nudity, sex and free speech.  Full Article 

Photo
A man walks past a bronze statue of a bull outside the Bombay Stock Exchange (BSE) building in Mumbai in this March 25, 2008 file photo. REUTERS/Punit Paranjpe/Files
Bubble trouble?

With India's benchmark stock index, the BSE Sensex, at around 17,000 points, are the Indian equity markets looking at a possible bubble?  Commentary 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

SPECIAL REPORT

Himangshu Watts
India's food dilemma

Indian farms are failing to attract capital or talent, either from rich landlords or the students who graduate from agricultural universities.  Full Article | Related Story 

showcase

U.S. Recession
U.S. Recession

A trip through the epicenters of the American recession.  Full Coverage 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
T P Raman
Column - RBI leads the world

Reserve Bank of India's approach ring-fenced the banking system.   Full Article 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Not Enough Jobs
Not Enough Jobs

Venture capital creates jobs, but not enough.  Full Article 

 
Column - A Sweet Dream
Column - A Sweet Dream

There are good reasons for Ferrero to consider a combination with Cadbury.  Full Article