Living in Los Cabos: How Much Does Gas Cost

Living in Los Cabos: How Much Does Gas Cost

I keep being asked “How much is gas in Cabo?”. Frankly I don’t care. But here’s your answer.

First, let’s address that answer which is totally unlike me. I’m not that callous. But the deal with gas is that it’s a government monopoly and the price is the price. You can’t cross town and go to a cheaper provider: whatever PEMEX says the price is in your area is what you are going to pay. So it is what it is. I know that 200 pesos used to get me ¾ tank and now is more like 2/3, but that’s just something I have to live with. So I, nor anyone I know, pay any attention except in January when PEMEX posts the new rates.

That said, many people looking to retire or vacation here in Cabo want to know the price of gas. So here goes. While I was putting gas into the Blue Cruiser today (December 16, 2010) I jotted down the pertinent info to calculate it for the interested parties.

So, OK, I paid 8.45 pesos per liter. There are 3.79 liters per gallon. So then I paid 32 pesos per gallon. I should add that was for Magna, which is the normal octane rather than the premium.

So, how much does that mean to you in dollars? Now that’s the key. The “tipo de cambio” or exchange rate at the gas station today was 12:1. So, if you bought one gallon of regular gas today using US dollars at the PEMEX you’d pay the equivalent of $2.66 per gallon. BUT!!!

The exchange rate other places in town was more like 12.5. So, if you bought pesos at the bank, and then used those pesos to buy gas, you’d pay about $2.56 US per gallon.

I should add that this is always full serve. If you tried, you couldn’t pump your own. The attendant will offer to check your oil and water, if you refuse they will at very least clean your windshield. You should give them a five peso or so tip.

So that’s the scoop on gas prices. I haven’t been north in nearly a year but it seems to me that gas is a bargain here compared to the States or Canada. You only have to worry about whether you’re getting every drop you’re paying for. And there are ways to make sure. But that’s another blog……..

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. A Certified Home Marketing Specialist, she has enjoyed working with both buyers and sellers for over nine years and still thinks hers is the best job on earth. She is also the real estate columnist for Los Cabos Magazine and the real estate co-ordinator for the Los Cabos Now program on CaboMil FM (www.cabomil.com.mx). You can read more of her articles on http://www.reloscabos.com. You can reach her from the U.S. or Canada at 1-760-481-7694, or in Cabo at 044-624-147-7541.

© 2010 Carol S. Billups

Buying Gas In Mexico

Once you have a vacation or retirement home in Mexico you get to learn the little tips and tricks that make it work. A long time ago, when we first had our house, someone taught me how to buy gas. It’s time for me to pass that along.

Don’t bother even thinking about what the price of gasoline is here. There is only one gas company, PEMEX, and the rates are set annually for the entire country. No need to shop around, every station charges the same everywhere in Mexico. Only engineering types like my husband think about converting liters to gallons and pesos to dollars to figure out what the price is compared to the U.S. Last time he did the conversion our price was about the equivalent of $1.85 per gallon. And that’s for full service, mind you. Not only pump the gas, but clean the windshield, check under the hood and put air in your tires. Not a bad deal at all.

So why do you need a trick? Ahhhh….

The stations, which are owned by various franchises, have a really bad reputation. As in not re-setting the pump to zero so you pay for more than you got, or giving bad change. I personally have never had a problem. But I know plenty of people who have. I believe I haven’t had a problem because people are basically good. But knowing this trick can’t have hurt. And it’s so simple!

Buy only 200 pesos worth of gas at a time, and pay only with a 200 peso note (and a little coin tip if the service was great). See, it’s that simple.

When you set an amount, like 200 pesos, they have to reset the pump. So you know you’re starting from zero. Although the new management at the PEMEX I use makes the client agree the zeros are set for every transaction: progress. And since the fee is set, you know how many liters you should get for 200 pesos: 27. And since no change is involved they really don’t have an opportunity to cheat that way.

When you get a new car simply drive until you’re riding on fumes, then buy your gas. Note how where the gauge is after they put it in and then you’ll know when to fill up in the future. This strategy has served me well.

As a means of apologizing, I thought I’d been scammed at the pumps last week. Preparing for Hurricane Jimena, for the first time I asked them to fill the tank. Why? Because I needed less than 3/4ths of a tank, which is what 200 pesos buys me. The pump went spinning waaay past 200, and ended up at 350. I figured I’d finally been scammed, that they had figured a way to rig the pumps and were using the hurricane to gouge people. My faith in humanity wobbled. That was 11 days ago. My gas gauge still reads full. Evidently my tank is much larger than I thought and the indicator is off.

See, people really are basically good! But, as Ronald Reagan famously said, “Trust everyone but cut the cards.”

Hope this simple little trick helps!

Carol Billups is Broker/Owner of REALTY EXECUTIVES Los Cabos. You can read more of her articles on http://www.reloscabos.com.
© 2009 Carol S. Billups