June 22, 2022 18:10 GMT
- A week before the grand opening of Mexican President AMLO’s flagship oil refinery project, costs have spiralled out of control to reach as much as $18 billion -- more than double its original price tag. (Bloomberg)
- Representatives for Pemex, as the state-owned oil producer is known, Mexico’s Energy Ministry, and President Lopez Obrador didn’t respond to requests for comment.
- Cost overruns are likely to continue due to soaring inflation, undermining the austerity pledges of AMLO. The situation also casts doubt on whether Pemex can fulfill its goal of producing all of its own gasoline, given how crucial the refinery is to the oil company’s efforts to end dependence on fuel imports.