• NEAR-MONOPOLY: The annulment in 2019 of an asymmetric pricing regulation designed to increase competition in Mexico’s fuel market along with a new fuel storage policy has helped the state-owned oil company (Pemex) to retain near-monopoly conditions.
• DISCOUNTS: “Pemex has been very aggressive. And the further (price) discounts that it will apply starting July 16 are to achieve (larger) market concentration and leave importers out of the game”, an executive of a gasoline-retailer group who asked to remain anonymous told Reforma newspaper.
• CONCERN: Part of several actions designed by the López Obrador administration to attempt rolling back the country’s 2014 energy reform, the new fuel policies put pressure on US companies like ExxonMobil, Chevron and Marathon. Per official figures, Pemex holds 87% of the gasoline market.
• DISCRIMINATION: “Recent actions taken by the Government of Mexico undermine this framework and discriminate against US investors in violation of commitments that Mexico agreed”, the American Petroleum Institute (API) said in a June letter to President Donald Trump mentioning the USMCA trade deal.
