Private parties may import gasoline and diesel into Mexico starting on April 1, 2016

Energy Alert

Latin America Alert

By:

Mexico’s Energy Regulatory Commission (the CRE) has announced that the open season procedures to assign capacity in Pemex gasoline and diesel transportation and storage systems will begin in the next few weeks.

To that effect, the CRE has issued new regulations aiming to guarantee open access in these systems to interested parties.  The procedures will be published and regulated by the CRE.

These regulations follow the announcement by the Energy Ministry of February 2016 whereby private parties may import gasoline and diesel into Mexico starting on April 1, 2016.

According to the regulations, Pemex shall grant third parties open access to Pemex’s systems; Pemex should give preference to third parties’ requests for service, as opposed to Pemex reserving capacity for itself. Also, the firsthand sale of gasoline and diesel by Pemex in Mexico  is heavily regulated by the CRE to make sure that Pemex does not engage in unduly discriminatory or monopolistic practices.

Each Pemex facility will operate under a permit granted by the CRE. Permits include approved general terms and conditions for providing the service, tariffs and rates. The open season procedures and other relevant information to guarantee open access by Pemex shall be published in an electronic bulletin.  

It is important to point out that sales to end users will remain under government price controls until the end of 2017, or sooner if the government considers that market conditions allow for competitive prices.

DLA Piper’s Mexico City office offers assistance with the complex new regulations that allow importation of gas and diesel into Mexico. For more information about these developments, or if you have any questions about these complex new regulations, please contact either of the authors.

For more information about our Energy work worldwide, please contact our Energy Sector Global Leaders:

Robert J. Gruendel
Joseph Tato
Francesco Novelli

For more information about our work in Latin America, please contact the co-chairs of our Latin America practice:

Juan Picón 
Robert J. Gruendel