US oil companies charge discrimination in Mexican fuel market

United States companies that operate in Mexico’s fuel market are not being treated fairly, says the American Petroleum Institute (API).

In a June 11 letter sent to senior United States officials, API president and CEO Michael Sommers asked the U.S. government to urge Mexico to cease discriminatory practices against U.S. oil companies.

Sommers said the companies are subject to new regulatory actions that undermine the framework that should allow unimpeded energy trade and investment between the United States, Mexico and Canada, countries which are party to the new North American trade pact that will take effect on July 1.

He said that U.S. companies have faced difficulties obtaining approval for new or rebranded gas stations and that some of their existing stations have been shut down for minor or nonexistent infractions. The API chief also said that companies have been subject to new storage capacity requirements and have faced delays or rejections for gasoline and diesel import permits.

In addition, the Energy Regulatory Commission has removed regulations applicable to the state oil company, Pemex, which allows it “to unfairly and opaquely undercut the pricing of foreign competitors, giving the company a significant advantage in downstream pricing,” Sommers wrote.

He charged that Mexico’s actions likely violate its commitments as set out in the investment chapters of the North American Free Trade Agreement, or NAFTA, and its imminent successor, the United States-Mexico-Canada Agreement, or USMCA.

Sommers also said that the actions likely breach Mexico’s commitment to non-discriminatory treatment as set out in the state-owned enterprises and designated monopolies chapter of the USCMA.

In the letter to Secretary of State Mike Pompeo, Commerce Secretary Wilbur Ross, Energy Secretary Dan Brouillette and U.S. Trade Representative Robert Lighthizer, the API president urged  the United States “to use diplomatic channels to engage with the president of Mexico” in order to solve the issues.

Financial Information company S&P Global noted that “the complaints by API members are in line with those by companies in other segments of the energy sector, like electricity generators and developers of pipeline infrastructure, which have voiced similar complaints regarding permits and regulations.”

Mexico’s government has also rankled renewable energy companies by suspending national grid trials they have to complete in order to sell power to the Federal Electricity Commission and publishing a new policy that could prevent the sector’s expansion here.

Renewable energy firms and environmental groups are fighting the decisions in court.

Source: S&P Global (en) 

Have something to say? Paid Subscribers get all access to make & read comments.
President Claudia Sheinbaum, who spearheaded the clean-up plan, toured the Quiroga Wastewater Treatment Plant on Saturday, thanking the workers involved in the rehabilitation projects.

Government invests US $60M to restore polluted, drought-impacted Lake Pátzcuaro

0
Four new wastewater plants are being built and six plants are being renovated alongside environmental rehabilitation actions to restore the health of Mexico's third-largest lake.

Government turning to AI to solve the acknowledged problem of medication shortages

2
A newly created Advisory Council for the Digital Transformation of the Health Sector is charged with improving the procurement and distribution of supplies for the more than 16,000 IMSS hospitals and health centers.
Giant bones in a pile in the Mexico City Zócalo as the city prepares to install a giant catrina figure in the Zócalo ahead of Día de Muertos next week.

Mexico’s week in review: Trade optimism holds despite a CIA-linked treason case

0
Mexico’s hopes for U.S. tariff relief shared the spotlight this week with a CIA-linked treason case, clean-water protests and scrutiny of the government’s fuel-theft crackdown.
BETA Version - Powered by Perplexity