Pemex poses challenges despite Mexico’s new oil plan

Significance The ENSHG marks a subtle but significant departure from the strategy followed by the government of former President Andres Manuel Lopez Obrador (AMLO, 2018-24), who was Sheinbaum’s political mentor. Impacts A drop in global oil prices could necessitate a financial rescue by the government, hindering fiscal consolidation. Despite financial pressures, mass layoffs of personnel are unlikely. Fully private investments might eventually be permitted, but only if oil production starts to decline sharply. Detached from international markets, domestic petrol prices will remain expensive compared to those in the United States.