What’s Up With Cabo Fuel Prices?

In recent weeks we’ve received a number of complaints from northbound cruisers who were outraged at having been charged a docking fee in addition to the price of the fuel they took on at Marina Cabo San Lucas. By the tone of their emails it’s clear that these sailors assume the new fees are a cash grab by the marina. But there is another side to this story.

Cabo Marina’s Director of Marine Operations Darren Carey explains the situation: Previously, a government fuel surcharge of roughly 5% was added to the cost of fuel at marinas. But with Mexican fuel prices steadily rising throughout the country in recent years — now roughly $1 per gallon higher than in San Diego — government agencies decided to eliminate the add-on surcharge, and instead charge a dockage fee based on the vessel’s length. The theory being that this would give a break to small commercial operators such as the modest day-fishing boats that dominate the Cabo Marina. 

Carey insists that the marina is not making any extra money off the new regulations, and that their basic fuel prices are virtually the same as in local gas stations, despite the higher cost of operating a water-based fuel station. Customers can easily test that assertion, as payment for fuel and the docking fee are broken down into two separate transactions. "We’re selling fuel at the lowest prices we’re permitted to sell at," he says. Because Cabo Marina is by far the largest seller of marine fuel in the region, the new system was instituted there first (March 1), but it may soon be imposed on many, if not all, Mexican marinas. 

Due to Latitude 38‘s running of the annual Baja Ha-Ha rally, we’ve had good relations with Cabo Marina for more than 20 years. While the marina has always welcomed our fleet, Carey, who is a sailor, is the first manager who has seriously tried to stimulate more business from the sailing community, as his facility is widely known solely as a sportsfishing center. "I’ve spent four years trying to build a transient flow of sailboats through here," he says. "The last thing I want to do is harm those efforts."

Terry Moore of the 2014 Baja Ha-Ha entry Imagine reports that he wasn’t charged any dockage tariff when he fueled up at Puerto Los Cabos recently (it lies 15 miles east of Cabo), so that may be an alternative for northbound cruisers — at least temporarily. Another way to ease the sting of the new fee is to treat yourself to a night in the marina while passing through Cabo. Carey explains that in his negotiations with regulators, he was able to get permission to offer a discount on the fuel dock fee to marina tenants — apparently whether they stay one night or 365 — which amounts to roughly a 75% reduction in the per-foot fee. The other Cabo fuel dock at Marinas de Baja is now closed.