Catemaco Gas

Along with gasoline, the behemoth PEMEX also controls the LPG supply (liquid petroleum gas) of Mexico. Distribution, though, is in private hands, and is alleged to be controlled by Mexico’s famous handful of family oligarchs.

Mexico is not self sufficient in butane and propane, the two major ingredients of LPG gas. More than 5% of Mexican gas stocks are flared, (burned), instead of being captured. Any shortage in stocks is covered by imports from the US. Piped natural gas installations, although considerably more cost effective, are still a rarity in Mexico. The great majority of Mexican homes depend on gas cylinders or residential stationary tanks, for both cooking and water heating. Mexico is the world’s largest consumer of residential LPG gas.

Catemaco, Veracruz is served by 2 gas companies, which maintain irregular route service to exchange tanks. The system is inconvenient, wasteful, incompetent, corrupt and expensive.

1. - To initiate gas service, the user must first buy his own tank, which can then be exchanged for a gas company tank. (600+/- pesos for a 20 kg tank)
2. - If you exchange that shiny new tank, you will receive a banged up, rusty cylinder.
3. - At any time, if there is a problem with a tank, the company will exchange it free. If there is a problem with the valve, the user is charged.  Guess the percentage of tanks versus valves!
4. - This is cash country. If nobody is at home to pay for the exchange, no tank is delivered.
5. - If you carry your own tank to the gas company and it is still 1/3 full, you will be charged for filling the whole tank.
6. - As with gasoline, you may be charged for 20 kg and only receive 18.
7. - There is no delivery or pickup service on Sunday, and both companies take long lunch hours, open late and close early.
8. - There is no delivery service by appointment, except for stationary tanks.
9. - The LPG price is fixed by the government once every month, and is roughly based on international pricing. 201 pesos per 20 kg (Nov 2010)
10. - Caloric content of Mexican LPG (BTU, the actual heat potential) is kept a secret from Mexican consumers, so price comparison with electricity is not functional, but it definitely is cheaper.

Gas Tanks come in 3 basic sizes, plus some smaller portable tanks, 10, 20 and 30 Kg. Theres is also a 45 Kg tank  which weighs almost as much as a Volkswagen. Catemaco’s most popular tank is the 20 Kg version which weighs as much as a skinny muchacha. (100 lbs+/-)

The 20 Kg tank is recommendable for consumers filling their own tanks. A typical installation of 2 x 20 Kg tanks plus a two way valve will cost almost 2000 pesos, including a handtruck and a wrench. Filling your own tanks saves the aggravation of messing with abused valve systems and often having to pay for them. (Incidentally I have yet to locally find a slip valve system to install on my tanks instead of the cumbersome left turn wrench system).

LPG gas is odorless. Methanethiol is added to create a noticeable foul smell in case of leakage. Mexico had a very major LPG gas explosion about 20 years ago and minor ones every week.
At present (Nov 2010) the cost of LPG gas is roughly 10 pesos per kilogram. That is approximately 20 pesos per gallon. Current US price averages US $ 2.50+ per gallon. In my experience a 20 Kg tank costing 200+ pesos (Nov 2010), lasts 2 people about a month, using a stove, but no oven, a hot water heater and an electric washing machine. One important observation is that the tank(s) will only be empty when whoever changes them is taking a shower!

LPG gas is also popular as an alternative fuel for many trucks in Los Tuxtlas, and supported by 2 filling stations with short hours. The fuel LPG is cheaper than the home LPG because it is not taxed as much.

Note: Repeated from 2006 after editing.