LPG and the need for hedging

September 24, 2025

Liquefied Petroleum Gas (LPG) is one of the most widely used energy sources in Mexico, especially in the residential, commercial, and industrial sectors. More than 70% of households use it for cooking or heating water, and multiple industries rely on it for thermal and agro-industrial processes.

Mexico combines domestic production with high levels of imports, mainly from the United States, making it dependent on international benchmarks such as Mont Belvieu. This exposure causes domestic prices to be affected by external factors, creating volatility that can impact company costs and household budgets.

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