Facing clean fuel shortfall, auto parts industry holds up 18bn pesos

The auto parts industry halted investment of 18 billion pesos (US $958 million) in the second half of last year as a result of the government’s decision to delay mass production and widespread distribution of ultra-low-sulfur diesel (ULSD) while demanding that new heavy vehicles be manufactured with environmentally-friendly technology.

The Energy Regulatory Commission (CRE) voted in December in favor of postponing for five more years the implementation of a rule requiring Pemex to produce, distribute and sell ULSD across the country. The postponement followed a deferral of the rule in late 2018.

According to the CRE resolution, the state oil company can only continue marketing ULSD in the country’s three largest cities – Mexico City, Guadalajara and Monterrey – and along the northern border.

Alberto Bustamante, foreign trade director of the national auto parts industry association, INA, who cited the 18-billion-peso figure at a press conference on Thursday, said that if the government continues to demand that heavy vehicles be made with clean technology even though ULSD is not widely available, an additional 2 billion pesos in investment will be lost in the first half of 2020.

Jobs could be lost in the auto parts sector as a result of the decline in investment, he said.

Miguel Elizalde, president of the National Association of Bus, Truck and Tractor Manufacturers, said that if ULSD is not available, companies won’t buy new heavy vehicles that were built to run on it and emissions levels won’t fall as a result.

He called on the Secretariat of the Environment to put an end to the requirement for new heavy vehicles to be built with EPA10 and EURO VI clean fuel technology until the production and widespread availability of ULSD is guaranteed.

Elizalde said last year that “we need to have total availability of ultra-low-sulfur diesel so that these clean technologies can be put to work.”

The president of the National Chamber of Trucking, Enrique González, pointed out Thursday that people are putting off the purchase of new heavy vehicles because they know that there is no obligation to supply ULSD to 81% of municipalities across the country.

Source: El Universal (sp), El Heraldo de México (sp) 

Have something to say? Paid Subscribers get all access to make & read comments.
A client makes a QR code payment at a market

How the government’s digital economy bill aims to reduce cash use in everyday payments

0
By making digital payments easier even in transactions with small businesses such as tienditas and food stalls, the government is hoping to include more people in the modern system as it boosts the economy.
Harfuch

Federal prosecutor fired as doubts grow over Mexico’s ‘largest-ever’ fuel-trafficking bust

0
The September 17 announcement of the seizure of 59 million liters of stolen fuel was presented as a major blow against crime, but it turns out that there may not have been any stolen fuel or any crime.
Chichén Itzá

More than 7,000 ignore clouds to gather at Chichén Itzá for the equinox

3
The great pyramid of Kukulcán in Chichén Itzá inspires awe at any time of year, but especially so during the spring and fall equinoxes, when a play of light and shadow creates the illusion of a serpent descending the face of the structure.
BETA Version - Powered by Perplexity