Do you need a loyalty program for gas stations in Mexico?

Fuel costs in Mexico

Mexicans must utilize cars to travel to work, the grocery store, and other places. However, due to the high cost of maintenance and the low salaries of the majority of the population, it is one of the most expensive countries in the world to own and drive a car. 

Despite government subsidies that keep fuel costs low, Mexicans spend a significant amount of their monthly wages on gasoline, according to a study by the American business Finn. 

Mexicans paid an average of 585 pesos at the beginning of 2022 to fill up their cars with gas, with the cost of a gallon of gasoline averaging 21.65 pesos. It is now closer to 25 pesos, which represents a 10% rise.

The Nissan Type Versa, which is the most well-liked vehicle in Mexico, serves as the basis for the thorough analysis. Depending on the type of gasoline, gas in Mexico City costs between 22 and 24 pesos a liter. Since Mexicans earn an average of 8–13 thousand pesos each month, it is simple to calculate that each liter of gasoline costs them up to 0.22% of their income. Therefore, assuming that the Versa’s fuel tank holds 41 liters of gasoline, a full tank costs the ordinary Mexican up to 9% of their monthly pay.   

Examples of the cost of a full tank of petrol for other popular car brands as a percentage of the average salary:

• Nissan NP300 – up to 17.6%;
• Kia Rio – up to 9.02%;
• Chevrolet Aveo – up to 9.9%;
• Nissan Sentra and Nissan March – up to 9.02%.

It is important to note that the percentage is calculated based on the assumption that each person fills the car’s tank completely. But in the same car, it can vary depending on driving style and fuel consumption.

Potential audience from the US

More Americans are visiting Mexico to save money on petrol. Even waiting in three-hour lines at the border is acceptable to them. Fuel costs in the US have increased by 40% since January 2021 alone, which has increased demand. According to BBC World, the savings from purchasing gasoline in Tijuana can reach USD 60 depending on the type of vehicle. As a result, a full tank will cost roughly USD 60 in Tijuana and over USD 120 in San Diego. Government subsidies for this area of the economy are to blame for the Mexicans’ pricing strategy. The special tax on goods and services (IEPS), which is paid for the production, sale, or import of gasoline, has been rejected by the present administration. 

Regular gasoline has increased by one peso and 35 cents a gallon, or about 10 US cents, since January of last year. Every two weeks, the cost of petrol increases by $0.70 in California. Although it was the Mexicans that traveled north to restock their gasoline supplies six years ago, the Mexican fuel market is currently undergoing a notable resurgence.

Number of petrol stations and fuel brands 

Mexico is an oil-producing nation, but during the past 20 years, its capacity has been quickly falling. To remedy the situation, the government removed Petroleos Mexicanos’ (Pemex) monopoly in late 2017 and permitted other companies to import various brands and types of gasoline into the Mexican market. The states of Mexico City, Jalisco, and Veracruz have the most gas stations.

In Mexico, there were roughly 13,500 gas stations and 307 different fuel brands as of the end of 2022. The state-owned oil, gas, and petrochemical firm Pemex, through franchisees, manages 62.1% of the total number of gas stations. Over the previous year, the market presence of other brands including Mobil, BP, Repsol, Shell, Chevron, Gulf, Arco, Total, and Valero increased by 103.3%.

The leading gasoline brands in Mexico

The top ten gasoline brands are among the more than 300 available. 

TotalEnergies is a French-owned energy company that produces and sells oil, natural gas, biofuels, electricity and renewable energy in more than 130 countries. Since 2017, it has started selling gasoline in numerous cities around Mexico in collaboration with a number of connected gas station groups. Through its Mexican subsidiary Total Atlantic Trading, the corporation has been importing fuel from the Port Arthur refinery in Texas since 2019. The business has more than 200 gas stations where motorists can purchase: 

• Regular Total gas with an octane rating of 87 is called Total Advanced.
• Total Excellium is a high-end gasoline with an octane rating of 91, which lowers the fuel’s impurity content by up to 93%.

PEMEX (Petroleos Mexicanos) is the largest national oil company in Mexico. It is the biggest franchise-based gas station brand there is. It issues permits to independent businesses and groups of gas stations so they can sell PEMEX fuel. In Mexico, there are roughly 9,000 PEMEX gas stations. Major gasoline brands: 

• The optimum performance for engines with a high compression ratio, direct injection, and turbocharging is provided by PEMEX Premium, a high-octane gasoline with an octane rating of 91 supplemented with ADiTEC technology.
• PEMEX Magna has ADiTEC technology and an octane rating of 87. It is designed to be used in multiple-injection engines with a medium compression ratio. 

At the gas stations owned by the Hydrosina group, which was established in 1992 in Mexico City, comparable gasoline brands are available. The organization started a rebranding process in 2012, and it was finished in 2016. There are 250 Petro 7 gas stations that sell PEMEX fuel as well. 

This is the name of the American firm Seven Eleven’s brand of gas stations. Grupo Iconn, a Mexican company involved in the convenience store industry, runs the Seven Eleven and Petro 7 Seven brands in Mexico. In Guadalupe, Nuevo Leon, the first Petro Seven gas station was established in 1988; nevertheless, the company underwent a branding in 2017.

The American oil business Exxon Mobil was established in Irvine, Texas, in 1870. Only in the winter of 2017 did Querétaro’s first gas station open for business. From its refinery in Texas, Mobil imports gasoline and stores it in terminals in Nuevo Leon, Guanajuato, San Luis Potosi, Hidalgo, and Veracruz. About 500 of the company’s gas stations in Mexico sell two of the most well-known gasoline brands: 

• Premium gasoline having an octane rating of 92, Mobil Synergy Supreme+ has anti-corrosion additives, detergents, and other substances that enhance the fuel’s performance.
• Regular gasoline with an octane rating of 87, Mobil Synergy Extra has additives that help safeguard the engine of the vehicle.

With its headquarters in The Hague, the Netherlands, and operations in more than 70 nations, Royal Dutch Shell is a Dutch integrated energy business that was formed in 1907. Although the first gas station opened in September 2017 in the state of Mexico City, it has been functioning in the Mexican market since 1954. The business now imports and sells liquefied natural gas and gasoline, expanding its business. The business operates roughly 250 gas stations and provides two varieties of gasoline: 

• Shell V-Power is a high-performance fuel with an octane rating of 91 that also contains additives that lessen corrosion and engine wear.
• Shell Super – petrol with an octane rating of 87, which contains special additives that help clean and protect the engine.

British Petroleum is a business that deals in the exploration, production, transportation, refining, and marketing of fuels and other derivatives. It was established in London in 1909 and is a part of the energy industry. It is active in more than 60 nations. Since the 1960s, the business has operated in Mexico, concentrating on the distribution and advertising of lubricants under the Castrol brand. In the state of Mexico City, the firm launched its first gas station in March 2017. More than 500 gas stations are open right now:

• BP Premium – premium petrol with an octane rating of 92 and Active technology to help keep engines clean and running smoothly.
• BP Regular – petrol with an octane rating of 87 (RONs) and fewer impurities that can remain in the engine.

One of the biggest oil businesses in the world, Chevron was established in the United States in 1911. The business is involved in petrochemical product exploration, production, manufacture, transportation, distribution, and marketing. In collaboration with Redco Group, it has been functioning in Mexico since 2017. It currently runs 225 gas stations throughout 50 cities and 7 states in the nation. Major gasoline brands:

• A premium gasoline with an octane rating of 91 (RONS) is called Chevron Supreme. Made with Techron technology, which aids in keeping the engine of your automobile in good condition by removing carbon deposits.
• Utilizing Techron technology, Chevron Regular is a gasoline with an octane rating of 87. 

Repsol is a Spanish-based oil corporation that was established in 1927. This business is involved in every step of the hydrocarbon value chain. It started doing business in Mexico in 2002 by selling lubricants on the local market. In March 2018, Repsol built its first gas station in Mexico City. As of right now, the company has more than 270 gas stations nationwide. The following brands of gasoline are available to customers:

• Neotech created Repsol Efitec Plus, a premium 91 octane gasoline, to assist lessen engine emissions and boost performance.
• Repsol Efitec is a regular petrol with an octane rating of 87 with Neotech technology.

American oil firm Gulf Oil was established in 1901. In the state of Puebla, the first Gulf gas station in Mexico opened its doors in October 2017. The company presently only operates roughly 150 gas stations, but it has an ambitious aim to open 2,000 in Mexico. They sell the following gasoline manufacturers:

• Gulf Premium is a gasoline with a 92 octane rating that is especially made to enhance your car’s performance, restore power, and accelerate the engine.
• Gulf Regular gasoline contains additives that assist clear engine soot and reduce fuel use, and it has an octane rating of 87.

As a result of a partnership between the Mexican petroleum firm G500 and the Swiss multinational Glencore, the Mexican petroleum company G500 was founded in 2014. There are currently more than 500 gas stations operated by the company, the first of which debuted in Tlanepantla, Mexico City, in August 2014. But the business intends to set up a network of 1,400 gas stations in Mexico.

• G Premium is a petrol for high-performance engines with 91 octane and G-Boost technology that helps to clean carbon deposits on injectors and valves.
• G Super is a regular 87 octane petrol with G-Boost to improve engine performance and fuel consumption.

Trends that can change the petrol station industry

The market of petrol stations. They are being automated for fast service, alternative fuels are emerging, and service is improving. 

Electronic payments

It is crucial that customers have a variety of payment alternatives. Every year, fewer transactions are made in cash. Mobile wallets like Apple Pay, Venmo, and AliPay are becoming more and more well-liked. They offer money transfers using several technologies, including RFID, GPS tracking, QR codes, and barcodes. 

According to Statista research, mobile wallet payments are becoming more and more popular in Europe and the Americas. It is crucial that POS terminals accept credit and debit cards that use contactless, dip-and-go, and chip-and-pin technologies, as well as mobile wallets, according to the payment service provider (PSP).

Special offers 

Discounts and promotions raise brand recognition, traffic, and average check. You can build pertinent offers with the aid of integrated point-of-sale systems that gather client and business information. This will enable you to customize goods, promotions, and even prices for particular clientele. A loyalty program can improve customer relationships with brands, increase sales, and gather more data about customers so that personalized rewards, offers, and messages can be sent to them.

Diversification of services

By adding more conveniences for drivers, such as offering food and beverages and alternative fuels (such as biodiesel, hydrogen, and electric), it will be easier to draw in more clients. Making gas stations into hubs for multiple services is another option. Any business that is tailored to the requirements of customers rather than their cars could match this description, including laundromats, fitness centers, bank branches, and beauty salons. Petrol stations are increasingly being transformed into warehouses and parcel distribution centers as e-commerce and logistics grow.