Soaring natural gas prices, along with the rising prices of other imported fuels, were causing inflation worries and are a hot-button topic in Mexico, according to experts.

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“The price of energy in Mexico is becoming an important issue,” Gadex consultant Eduardo Prud’homme told NGI’s Mexico GPI.

In July, the Mexican government placed price caps on liquified petroleum gas (LPG) sold on the back of the rising cost of imports. This could potentially impact the competitiveness of natural gas, Prud’homme said.

A natural gas buyer in Mexico City told NGI’s Mexico GPI that the LPG price meddling was causing “tension” in the sector. The source said the price of U.S. gas plus distribution fees is becoming “very costly.”

Mexico imports most of its natural gas from...