The Mexican federal government and more than 20 fuel industry companies signed a temporary agreement on March 31 to cap diesel prices below 28.30 pesos per liter (roughly $1.38 USD), providing relief as geopolitical turmoil drives up global energy costs.
The Secretaría de Energía (Sener), Mexico’s energy ministry, announced the deal alongside the Secretaría de Hacienda y Crédito Público (SHCP), the finance ministry. The agreement applies nationwide, including Baja California and Baja California Sur.
From 31 Pesos to Under 28.30
Diesel had recently climbed to 31 pesos per liter at some stations across the country. The national average on March 31 stood at 28.84 pesos per liter, according to El Economista. That same day, diesel in the United States averaged 25.58 pesos per liter after currency conversion, a gap of 3.26 pesos.
President Claudia Sheinbaum first announced a preliminary diesel cap of 28.50 pesos per liter on March 27. The March 31 agreement lowered that target to 28.30 pesos, a voluntary commitment by participating companies to hold prices during the coming weeks.
Extends an Existing Gasoline Strategy
The diesel pact mirrors an existing agreement on regular gasoline. Since mid-2025, the government and fuel retailers have maintained a cap keeping regular gasoline below 24 pesos per liter (about $1.17 USD). That gasoline deal was renewed in March 2026 for an additional six months, with 96% of the country’s gas stations participating.
Both agreements are voluntary and temporary. The government has also signaled willingness to cut the IEPS fuel tax if prices continue to climb. The Pemex CEO said after a meeting with fuel companies that the diesel deal was a natural extension of the gasoline strategy.
What Is Driving the Spike
SDP Noticias reported that the price surge stems from the ongoing conflict involving the United States, Israel, and Iran in the Middle East, which has disrupted global oil markets. Mexico’s diesel prices hit a historical high of 26.25 pesos per liter in December 2025 before surpassing that level in early 2026.
In Baja California, diesel prices directly affect the cost of freight, commercial fishing, agriculture, and backup power generation. Fuel trucked south of Ensenada or shipped to remote areas of Baja California Sur typically carries an additional markup.
The agreement’s temporary nature means prices could rise again once the deal expires. The government has not announced a specific end date. Reporting on this story originated with Zeta Tijuana.