Mexico’s federal government has announced that, effective from January 1st 2016, fuel will be able to be freely imported throughout Mexico’s territory, although any true effects are not expected to be seen for two years. Pemex, Mexico’s state oil company announced through its Commercial Directorate that the company has started negotiations with local businessmen in order to create new gas stations, which will now compete against Pemex’s own 11,439 pumping stations.
Starting this year, companies will now be allowed to import fuel, no longer being forced to purchasing their product through the state company, which until now held a monopoly on customer sales. This new freedom will allow competitors to set their own prices as they purchase fuel on the international market.
In an analysis on the effects of this opening, Mexico’s Center for Research for Development (CIDAC) points out that the new situation could cause excessive concentration, as those which are able to take advantage of foreign prices may compete against others, selling at similar prices for greater profit.
The report recommended that authorities, such as the Federal Economic Competition Commission (COFECE) and the country’s Energy regulator should closely monitor the development of the market through 2016, in order to determine whether companies have thrived or whether concentration does take hold.
Full content: El Diario / El Mañana
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Subscribers Defend $4.7 Billion Antitrust Verdict Against NFL in Court Filings
Jul 19, 2024 by
CPI
Von der Leyen Calls for Competition Policy to Boost EU Companies’ Growth
Jul 19, 2024 by
CPI
Vermont AG Sues Pharmacy Benefit Managers Over Drug Prices
Jul 18, 2024 by
CPI
Australians Face Increased Stamp Prices Following ACCC Approval
Jul 18, 2024 by
CPI
Live Nation Seeks Dismissal of DOJ Antitrust Allegations
Jul 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Private Equity Roll-Up Schemes
Jun 28, 2024 by
CPI
The FTC’s Focus on Private Equity is Warranted
Jun 28, 2024 by
CPI
Unraveling the Roll-Up: Private Equity’s Misunderstood Investment Strategy
Jun 28, 2024 by
CPI
Antitrust Focus on Private Equity Funds and Serial Acquisitions
Jun 28, 2024 by
CPI
Private Equity Roll-Ups Amidst Heightened Antitrust Enforcement
Jun 28, 2024 by
CPI