This paper considers the regulation of pricing of liquid petroleum gas in Mexico. We construct a model which incorporates all information essential to the pricing question, and derive relationships which should hold between prices in Mexico and prices in world markets. Prices in Mexico can be...

The Comisión Reguladora de Energía of Mexico has implemented a netback rule for linking the Mexican natural gas price to the Texas natural gas price. This paper shows that in an open economy where agents can chose between gas and alternative fuels, and where the density function describing the...

This paper addresses the timing of optimal investment in LPG pipelines when the goal is to maximize consumer surplus less private cost and social of transporting LPG. The loss of consumer surplus is small. The important elements are the private cost of transporting LPG and the congestion created...