Competition and gasoline prices in the Monterrey metropolitan area: evidence from the first year of liberalization
DOI:
https://doi.org/10.29105/trendinomics.v1i2.8Keywords:
gasoline market, retail prices, competition, energy liberalization, international pricesAbstract
This article presents a descriptive analysis of the liberalization of the gasoline market in Mexico during 2017. The study focuses on the Monterrey Metropolitan Area and examines the relationship between competition and retail prices for low- and high-octane gasoline. Using panel data and Feasible Generalized Least Squares estimations, the results show that the effect of competition on prices was weak and not robust across specifications. However, average prices were between 2.1% and 2.7% lower in the months following liberalization. The findings highlight the relevance of international prices and provide a regional perspective on the early dynamics of deregulation. Although the scope of the study is limited to one year and one region, it offers descriptive evidence that can serve as a reference for future research on gasoline markets in Mexico.
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Copyright (c) 2025 María Fernanda Gallegos Rodríguez, Karla Vanesa Herrera Gorrochotegui, Santiago Lugo Morales, Juan Francisco Suárez-Martínez
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