Mexico approves 10% ethanol content for gasoline

Mexico’s energy regulator, CRE, has approved an increase in the ethanol content in gasoline for domestic consumption to as high as 10% from the current 5.8%, according to Reuters.

The move has been made despite environmental groups warning that the action could cause more pollution. The change will mean gasoline imported and sold in Mexico will be closer to that sold in the US.

"Gas stations in Mexico can't offer gasoline similar to that sold in the United States of America because norms prohibit such gasoline from being sold in Mexico," CRE said in the official gazette.

"This situation, in addition to being a disadvantage for the already established gas stations in Mexico, represents a barrier for those who plan to import into Mexico gasoline used in the United States of America," CRE added.

The new measure will only affect gasoline, not diesel. It took effect on 27 June,2017. It will not apply to Mexico City and many of its surrounding municipalities, or Guadalajara, the capital of Jalisco state and Monterrey, the capital of Nuevo Leon, claims the Reuters article.

Environmental groups have warned that increasing ethanol levels in gasoline will worsen air pollution in Mexico.