By August 29, 2016 Read More →

Mexico looks to liberalize gas prices beginning next year

Gas prices

Pemex currently controls gas prices in Mexico.  The proposed move is meant to open up competition in the retail gasoline market. photo.

Gas prices liberalization meant to foster competition in retail market

MEXICO CITY, Aug 29 (Reuters) – Mexico’s government will next week propose that Congress bring forward one year, to January 2017, the planned liberalization of gasoline prices, the finance ministry said on Monday.

The measure aims to foster competition in the retail gasoline market, which is currently in the hands of state oil company Pemex.

The state giant produces and imports gasoline consumed within Mexico. Private companies are already allowed to enter the gasoline market under a landmark energy sector opening, but no one has done so as the government continues to fix gasoline prices.

Miguel Messmacher, a deputy finance minister, told local radio the government would make its proposal by Sept. 8 at the latest, the deadline for it to submit its 2017 budget.

A sweeping energy sector reform the government is implementing is unraveling the decades-long monopoly Pemex enjoyed, including allowing private companies to import gasoline and compete with Pemex, which has 11,000 gas stations.

(Reporting by Ana Isabel Martinez; Editing by Cynthia Osterman)

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