Mexican government to propose gasoline prices liberalisation

MEXICO CITY, August 30, 2016 – Mexico’s government will propose Congress bring forward the planned gasoline prices liberalisation to January 2017 next week, the finance ministry announced yesterday.

This liberalisation measure aims at promoting competition in the retail gasoline market currently monopolised by state-owned Pemex, which produces and imports gasoline distributed in Mexico through the company’s 11,000 retail stations. While private actors have already been allowed to enter the market, government-fixed prices have so far deterred potential entrants.

Deputy Finance Minister Miguel Messmacher told Mexican radio that the proposal would be made by September 8 in order to submit it for the 2017 state budget. The move is part of a broader governmental effort to reform the energy industry and end Pemex’s monopoly in several sectors.

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