The Mexican government plans to institute a new business within the state’s oil company Petroleos Mexicanos (Pemex) for the distribution of liquefied petroleum gas (LPG) directly to consumers, Mexico’s President Andres Manuel Lopez Obrador stated, according to Reuters.

The President said that the new company will first operate in Mexico City, where LPG prices are high.

He did not specify the distributors involved. 

“Pemex is also going to take charge of LPG distribution. We are not going to take away the right to sell gas from distributors but there will be more control of supply and pricing,” Lopez Obrador added.

LPG prices have increased by more than 30% in some areas of the country in 2020, according to Mexico’s government’s consumer watchdog Profeco.

In this respect, Lopez Obrador criticized private LPG companies for hiking the prices levels far above inflation rate, which is at 3.15%.

 It is worth to mention that about 76% of households in Mexico use LPG as their main source of energy for cooking.