Mexico Limits Private Firms to Import Fuel

Mexico Limits Private Firms to Import Fuel

The Mexican government has issued new regulations limiting private firms to import fuel.

The decree takes effect as of today, Monday 28, and aligns with President Andres Obrador’s plan to eliminate fuel imports and make Mexico oil-independent. The regulations also included offer import permits for five years only rather than 20 years. The President’s plan aimed at reviving Mexico’s national oil company Petroleos Mexicanos (Pemex). Thus, Obrador brought regulators to his side to boost ailing Pemex, which has suffered years of losses, and in April lost its investment-grade credit rating.

The new regulations were publicly criticized, Mexico’s antitrust regulator, Cofece, declared that “the draft plan would seriously hamper … free competition in the commercialization of petroleum products.” Meanwhile,  Oil Analyst, Gonzalo Monroy, stated that this step could close the market and ultimately leave it in Pemex’s hands.

 

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