Mexican authorities have talked a lot about the gasoline price liberalization. They planned to begin it in 2018. The government advanced the program to start the liberalization next year. The process will be by regions and begins in February.
Mexican peso fell by more than 13% after Trump’s victory in the US elections.
Mexican authorities has said that liberalization of fuels market will help to reduce prices in Mexico. It would beneficiate the final consumer, they highlighted. However, Citibanamex believes the opposite.
Jesús Padilla Zenteno, President of Coparmex in Mexico City, said Mexico’s Energy Reform is hurting the productive and social sectors.
The main domestic risks faced by the Mexican economy in terms of growth and stability are the fall in oil production and the lack of a strong fiscal adjustment, because the difference between income and expenses is large, warned Bank Of America.
The Federal Government has launched an infrastructure plan to import and transport the natural gas in Mexico. The authorities believe it would help to make a gas market based on free competition, according to a report in Expansión.
The gasoline market has been opening gradually to competition. The sector expects that the Government authorizes a free completion next year.
The Secretariat of Energy (SENER) granted 442 permits to public and private companies to import fuels. With this permits, the firms will import 406B liters of gasoline.
The speed and rhythm of gasoline market opening depends on the Congress and not of the Federal Competition Commission (Cofede) assured Alejandra Palacios, President of Cofede.
Magna production has had a steady decline during 2016. According to Pemex data, it was produced 279mmbpd of magna gasoline in August, which means a 20% fall compared to the same period last year. Magna gasoline is the most consumed fuel in Mexico.
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