
Mexico competition watchdog issues dire verdict on LPG market
Competition watchdog Cofece has issued a final resolution on competition in Mexico's regional markets for liquified petroleum gas (LPG), saying almost all of them do not function properly.
According to the regulator, 97%, or 213 of the 220 markets, are affected by issues that stimy competition and are causing consumers to pay more than they should.
Some of the key issues include a high degree of market concentration, meaning few players hold most of the market share; consistently high margins across the country that have failed to attract new competitors despite their attractiveness, and important economic and regulatory roadblocks that make it difficult for firms to enter or leave the market.
An additional disfunction comes from the presence in many large urban areas of small informal distributors, known as comisionistas, who carry out their activities without permits and often under inadequate security conditions. Comisionistas block the access of legitimate distributors to certain areas, Cofece said. Last year, violent strikes by the comisionista sector paralyzed deliveries in Mexico City for two days.
Regulatory barriers exist as a result of market complexity, as firms must establish communications with five regulatory bodies, including energy regulator CRE, environment agency Asea, energy ministry Sener and the finance ministry, to comply with the regulatory framework.
While the final resolution from Cofece would theoretically enable CRE to intervene in the market, in practice a price ceiling has been in place since August last year. CRE was criticized at the time because it decided to issue the pricing policy without waiting for Cofece’s assessment.
Recent turmoil in the international natural gas market has also caused many industries to increase their LPG use, according to Independent Commodity Intelligence Services (ICIS), as the latter’s supply chain has been less impacted than LNG worldwide, with prices less affected by the crisis.
Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.
News in: Oil & Gas (Mexico)

ExxonMobil announces corporate plan – Company expects to double earnings and cash flow potential by 2027, increases...
Approximately $17 billion for lower-emission initiatives through 2027; an increase of nearly 15%

Mexico power watch: USMCA dispute developments, Tamaulipas state creates energy ministry
BNamericas provides a roundup of news stories from the Mexican energy sector.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects in: Oil & Gas (Mexico)
Get critical information about thousands of Oil & Gas projects in Latin America: what stages they're in, capex, related companies, contacts and more.
- Project: Clean fuels project, Madero refinery (II stage)
- Current stage:
- Updated:
6 months ago
- Project: Tula-Villa de Reyes pipeline
- Current stage:
- Updated:
6 months ago
- Project: Gas pipeline in Baja California
- Current stage:
- Updated:
6 months ago
- Project: Francisco I. Madero refinery modernization
- Current stage:
- Updated:
6 months ago
- Project: Replacement BTX and NP-1 reformers for refinery in Minatitlán
- Current stage:
- Updated:
7 months ago
- Project: Biomex ethanol plant
- Current stage:
- Updated:
7 months ago
- Project: Minatitlán Refinery's new power train
- Current stage:
- Updated:
7 months ago
- Project: Block 24 - Tecolutla
- Current stage:
- Updated:
7 months ago
- Project: Pichilingue gas terminal
- Current stage:
- Updated:
7 months ago
- Project: Clean fuels project, Tula refinery (2nd stage)
- Current stage:
- Updated:
7 months ago
Other companies in: Oil & Gas (Mexico)
Get critical information about thousands of Oil & Gas companies in Latin America: their projects, contacts, shareholders, related news and more.
- Company: Industria On-OffShore del Valle, S.A. de C.V.  (Industria On-OffShore del Valle)
-
The Mexican company Industria On-OffShore del Valle is dedicated to the supply and repair of industrial equipment for the pipelines, chemical and petrochemical sectors, refining...
- Company: Secadero Petróleo y Gas, S.A. de C.V.
-
Secadero Petróleo y Gas, S.A. de C.V. is a consortium formed by the Mexican E&P company Grupo R Exploración y Producción, S.A. and Constructora y Arrendadora México. The pair of...
- Company: BP Exploration México, S.A. de C.V.  (BP Mexico)
-
British company BP entered the Mexican market in the 1960s with the distribution of Castrol products. The Mexico City-based company provides and sells natural gas, liquefied pet...
- Company: Technip de México S. de R.L. de C.V.  (Technip México)
-
TechnipFMC TECHNIP is an engineering and construction company that operates in oil and gas projects, technologies, systems and services. With proprietary technologies and produc...
- Company: SSA México S.A. de C.V.  (SSA México)
-
SSA México S.A. de C.V., the local unit of US-based port operator SSA Marine Inc., offers cargo-handling and related services for the movement and storage of various types of ca...
- Company: Iberoamericana de Hidrocarburos, S.A. de C.V.  (IHSA)
-
Iberoamericana de Hidrocarburos S.A. (IHSA), a consortium made up of Mexican oil and gas company Monclova Pirineos Gas, S.A. de C.V. and Spanish firm Cobra Instalaciones y Servi...
- Company: Pemex Logística
-
Pemex Logística is a subsidiary of Mexico's state-run oil company. It was established in 2015 as part of Pemex's restructuring, which also created another four subsidiaries. The...
- Company: Consorcio Hokchi Energy - E&P Hidrocarburos y Servicios
-
The consortium is made up of Argentina-based Pan American Energy LLC and E&P Hidrocarburos y Servicios S.A. de C.V. It was awarded in the second phase of Mexico's Round One tend...
- Company: Petróleos Mexicanos S.A. de C.V.  (Pemex)
-
Mexico's state oil company Petróleos Mexicanos S.A. (Pemex) is engaged in the exploration, production, transportation, refining, storage and sale of hydrocarbons and derivatives...