In 2008, Mexico was the seventh-largest oil producer in the world, and the third-largest in the Western Hemisphere. State-owned Petroleos Mexicanos (Pemex) holds a monopoly on oil production in the country and is one of the largest oil companies in the world. The oil sector is a crucial component of Mexico’s economy: while its relative importance to the general Mexican economy has declined, the oil sector still generates over 15 percent of the country’s export earnings. More importantly, the government relies upon earnings from the oil industry (including taxes and direct payments from Pemex) for about 40 percent of total government revenues.

Mexico is considering a number of options for setting fuel consumption standards. The objective is to achieve a level of 18 km/l (5.5 l/100km, 130gCO2/km or 42.3 mpg) in 2015. The purpose of these standards would be to reduce greenhouse gases and to curb oil imports.

The Global Fuel Economy Initiative Auto Fuel Efficiency ToolSet have prepared this case study to help outline the options available.

Download the document here: The Mexican developing automotive fuel economy policy