Mexican Government Takes Step to Limit Fuel Imports

The Mexican government issued on Sunday afternoon new regulations in order to limit the ability of private companies in the country to import fuel, fanning concerns that the move could benefit national oil giant PEMEX.

The Mexican government issued on Sunday afternoon new regulations in order to limit the ability of private companies in the country to import fuel, fanning concerns that the move could benefit national oil giant PEMEX.

The rules, which were issued by the energy ministry and scheduled to go into force on Monday afternoon, are part of a drive by Mexican President Andres Manuel Lopez Obrador to put an end to fuel imports and make the country oil-independent.

According to newspaper El Universal, among the different changes set out by the Mexican government’s official gazette, the energy ministry will now offer imports permits for five years instead of 20.

Mexico’s antitrust regulator Cofece had criticized a draft proposal for the new regulation and urged the economy ministry to carry out further analysis. 

The regulator pointed out in a resolution last week that curtailing permits would lessen incentives to invest, while “reaffirming … the dominant position of Pemex.”


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