Pemex stops openly posting wholesale fuel prices

Mexico's state-owned Pemex has stopped publicly posting its wholesale gasoline and diesel prices after a legislative reform unwound transparency requirements set in the wake of the country's 2014 energy reform.

Pemex last posted gasoline and diesel prices for 30 April, and last posted wholesale jet fuel and fuel oil prices for 1 May on its public website. Pemex customers will only receive the prices directly, a buyer told Argus.

Mexico's congress last week passed a reform sent by the administration of President Andres Manuel Lopez Obrador to end so-called asymmetric laws aimed at curbing Pemex's decades-long monopoly. Among these were requirements for Pemex to make public certain prices and discounts, unlike most suppliers in the market. The changes were also part of a drive for data transparency under the original reform.

The government argued that enough new competitors are in the market to end these transitory requirements, which were originally designed to lift once private-sector companies supplied at least 30pc of the combined offer of gasoline and diesel.

But Pemex supplied 87pc and 72pc of the gasoline and diesel markets in 2020, respectively, and a similar share to date this year, Alejandra Palacios, head of Mexico's competition watchdog (Cofece) has said.

Pemex stopped publishing its wholesale prices publicly even though the reform has not yet appeared in the government gazette, which is when laws become official.

Pemex did not immediately respond to a request for comment.

"This is Pemex moving ahead of the legal schedule," energy lawyer Diego Campa said. "They are aware that the government will not sanction them."

The bill could still face legal challenges from private-sector companies, such as those which led to a suspension of a recent power-sector reform that favors state companies. Yet the most recent reform may not be open to the same type of legal challenge because of its narrow focus on one company, rather than a general law that applies to an industry, Campa said. Cofece may be the only body that can challenge the law, he said.

Another recently passed reform that makes it harder to obtain operating permits for the fuel market and easier to lose them could face more challenges in court because of its broader effects.

By Sergio Meana