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Mexico plans domestic relief for high fuel prices
Sun Sep 4, 2005 9:48 PM ET



MEXICO CITY, Sept 4 (Reuters) - Mexico's President Vicente Fox said on Sunday he will quickly take measures to reduce the impact that the Hurricane Katrina disaster has on energy prices for Mexican consumers.

State-owned oil monopoly Pemex faces soaring costs for importing U.S. gasoline into Mexico, where refining capacity is too small to meet national fuel needs.

"This week, I will announce a decree to minimize the impact of this unfortunate disaster in the United States on Mexican families and national industry," Fox said, speaking in the northern city of Monterrey.

Pemex so far has not said how much it will be affected by higher prices and scant supply of U.S. gasoline, on which Mexico depends for a quarter of its automobile fuel needs.

Mexico imported 138,200 barrels per day of gasoline in July, as well as diesel and other fuels like natural gas.

The blow to Mexican oil exports has been minor, Pemex has said, with only one of the refineries it supplies in hurricane-ravaged Louisiana cancelling supplies of Mexican Maya crude.