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Mexican court to rule on ethanol next week

3 Oct 2017, 9.41 pm GMT

Mexican court to rule on ethanol next week

Mexico City, 3 October (Argus) — A Mexican court will deliver on 9 October its final verdict on whether the country can increase the maximum allowed amount of ethanol in gasoline to 10pc.

The court had issued on 13 September a temporary injunction on a regulation that increased the maximum amount from 5.8pc to 10pc, according to court documents provided by a source close to the case.

The decision was initially expected on 21 September, but the 19 September 7.1 magnitude earthquake that hit central Mexico, including the capital city, caused delays.

Opponents of the regulation enacted by Mexico's energy regulatory commission (CRE) on 26 June, argued that it violated fundamental rights to a healthy environment, based on the grounds that ethanol creates hazardous air pollution.

Francisco Javier Rebolledo, a judge with Mexico City's sixth circuit court, sided with the plaintiffs. The CRE said at that time that it had not been formally notified of the judge's decision.

The new 10pc ceiling did not apply to the country's largest cities of Mexico City, Guadalajara and Monterrey, because of pollution concerns.

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