Liberaton of Fuel Markets

Publicada en Publicada en Energy, English, Infrastructure, Mining

The Energy Regulatory Commission (“CRE”) has recently announced the timeline applicable for the liberation of fuel markets.

Pursuant to CRE ruling, during the following year, the gasoline and diesel markets will move from a single supplier model to an open and competitive scheme, where multiple players will supply fuels throughout the territory.

By the new scheme, Mexican government expects to encourage competitiveness based on price, service and quality of the product. It also expects investments in US$2.0 billion for storage and transportation infrastructure and an additional amount of US$12.0 billion in fuel sales.

The process will begin in bordering states of the north of Mexico.

Liberation process involves five stages: first and two, in the north; third and fourth, in the mid-center and west part of Mexico; and the last stage in the Yucatan peninsula.

Mexican State

Phase

Liberalization date

Baja California and Sonora

1

March 30th 2017

Chihuahua, Coahuila, Nuevo León, Tamaulipas, Municipality of Gomez Palacio, Durango

2

June 15th, 2017

Baja California Sur, Durango, Sinaloa

3

October, 30th 2017

Aguascalientes, Mexico City, Colima, Chiapas, Estado de México, Guanajuato, Guerrero, Hidalgo, Jalisco, Michoacán, Morelos, Nayarit, Puebla, Querétaro, San Luis Potosí, Oaxaca, Tabasco, Tlaxcala, Veracruz, Zacatecas

4

November, 30th2017

Campeche, Quintana Roo, Yucatan

5

December 30th2017

With fuel market liberation, prices will be determined by oil price, refining, transportation, and storage costs, commercial margin sales, taxes and exchange rates.

As of January 2017 and while liberation is set in each zone, the Finance Ministry will establish the maximum regional prices.

The lawyers of the energy, mining and infrastructure area of our firm are available for any questions or comments on the above.

 

 

 

 

 

 

 

 

SINCERELY

 

  

Daniel Del Rio delrio@@basham.com.mx
Juan C. Serra serra@basham.com.mx
Jorge E. Escobedo jescobedo@basham.com.mx

 

Mexico City, on December 23th, 2016.

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