Mexico bases 2007 budget on $37.50/barrel oil

Mexico City (Platts)--5Apr2006

Mexico's 2007 federal budget is based on an average export price of
$37.50/barrel for the nation's crude, according to a proposal sent to Congress
Tuesday night by President Vicente Fox.

Oil currently accounts for 35% of the federal government's income.

The current average export price for Mexican crude is about $54/barrel,
but past bitter experience has taught Mexico's financial authorities to err on
the side of caution in preparing the nation's budget.

This year's budget is being presented well ahead of its usual time, so as
to avoid a clash with the July 2 presidential elections and the December 1
inauguration of the nation's new leader.

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