ABSTRACT
The guidelines for administering Petroleos Mexicanos' (PEMEX) finances were defined early in the Diaz Serrano administration in PEMEX's Programa Sexenal. Several consecutive increases in domestic gasoline, diesel, natural gas, and other derivative prices were aimed at reducing the gap between Mexico's domestic prices and the prevailing international prices, but the increases only had an indirect effect on PEMEX's finances. During the second half of the Echeverrla Alvarez administration, the foundations were laid for PEMEX's future financial policy. On numerous occasions PEMEX management explicitly stated the measures that had to be taken as part of its financial policy were based on efficient resource administration and geared toward counteracting possible financial imbalance. When the new government took office in December 1982, Mexico was in the throes of the most serious economic crisis of the last few decades; seemingly brought about by the aftermath of the oil boom, this crisis was, in fact, the result of the economic policy followed after the 1940s.
