Mexico's supreme court reinstated last week the asymmetric regulations intended to restrain state-owned Pemex's energy markets monopoly, after congress eliminated them in 2021.
In the ruling the supreme court argued that regardless of the powers granted to the congress to legislate hydrocarbons, Mexico's energy regulator (CRE) holds exclusive authority to regulate Pemex's wholesale natural gas, gasoline, diesel, LPG and jet fuel sales.
Asymmetric regulations, initially imposed on Pemex after Mexico's 2014 energy reform, aimed to encourage competition in the hydrocarbon industry and curb Pemex's monopoly. President Andres Manuel Lopez Obrador's administration justified abolishing the regulations in May 2021 by claiming there was sufficient private competition in the market.
In 2022, Pemex accounted for 84pc of all gasoline sales, according to the company, up from its lowest market share of 74pc in August 2021, and 77pc of all diesel sales, up from the low of 64pc in July 2021.
Since congress rolled back the Pemex restrictions in May 2021, several private companies filed legal appeals. In March 2022 a district judge granted an injunction, declaring the reform unconstitutional, which was upheld by the Mexican supreme court last week.
Due to the nature of the injunction, the supreme court ruling only applies to the eight companies that filed appeals.
Following the ruling more companies are expected to seek legal protection and the repeal of the 2021 law.
The process will take time, and an immediate change to how Pemex is regulated is not anticipated, an energy lawyer familiar with the cases told Argus.
Before the May 2021 law Pemex had to publicly post its wholesale gasoline and diesel prices, but it stopped the posting 30 April, and last posted wholesale jet fuel and fuel oil prices on its public website on 1 May 2021. Since then, Pemex customers only receive the prices directly.
