Heat oil in a saucepan with a tight fitting lid over medium-high heat. Add the rice and cook for 3-4 minutes until golden brown, stirring with a wooden spoon so it doesn't burn.
Add the water, bouillon, onion, and garlic. Bring to a boil.
Turn the heat to low. Cover the pan with a lid and simmer for 25-30 minutes, or until rice is tender.
Remove the onion, and fluff the rice with a fork. Serve hot as a side to any Mexican food.