A planned new oil refinery in Mexico could cost up to $10 billion, the head of the state oil company Pemex said on Tuesday. Pemex pegged the cost of a new refinery at $8.17 billion in a report released in July. Pemex is currently evaluating where the new refinery will be built and hopes to begin early construction work by the fourth quarter of 2009, Pemex president Jesus Reyes Heroles said in a radio interview.
Mexico has not built a new refinery in years and the country now relies on imported fuel for more than 40 percent of gasoline consumption. Imports of diesel fuel and other refined products are also rising.