ABSTRACT

Global Development Plan deemed it necessary to modify energy-pricing policy, assigning it three functions: to finance the energy sector's development, to fortify public finances, and to rationalize consumption. Far from constituting an adequate means of financing investment, the pricing policy was subordinated to the overall economic and social objectives of successive governments. National Development Plan 1983-1988 simply reinforced the course of action defined In 1980 as part of the energy-pricing policy. Although hydrocarbon-pricing policy was used to achieve certain economic and social objectives, clear criteria for defining a relative-price policy, particularly for complementary or substitute products, have not been established. One of the determining factors in the rapid growth rate in the domestic demand for derivatives after oil was nationalized in 1938 was Petróleos Mexicanos' (PEMEX) low-price policy. In view of Mexico's prolonged crisis, keeping domestic prices low seems to counteract the aim of achieving PEMEX's financial well-being.