In the space of just four years, Mexico’ energy markets – from wellhead to service station – have opened to the outside world after four decades of monopoly control under Pemex.
International oil majors and U.S. independent refiners/marketers have entered Mexico’s downstream fuel sector and are pressing their first-mover advantage to develop direct marketing channels. They are competing with a restructured Pemex, which has been grappling with refinery operational issues due to a lack of funds and expertise and widespread theft of petroleum.
Logistics companies on both sides of the border are coming up with transportation and storage solutions to allow suppliers of gasoline and diesel from outside the country to connect to the net-short Mexican market and the growing retail and wholesale segments of the supply chain.
Since the first BP-branded fuel station opened in Mexico City in March 2017, other foreign companies and brands that have entered the retail space or are investing in wholesale marketing include Shell, Gulf, Glencore, Chevron, Valero, Andeavor, ExxonMobil, Total and Repsol. At the same time, new Mexican brands have also entered the market – including G500, OXXO GAS, Petro Seven, Hidrosina, Orsan and RedCo – while Pemex has rebooted its franchise offering.
During 2017, the market saw the end of government-set retail prices of gasoline and diesel. Free-floating prices came first to the northern third of the country, followed by liberalization in the rest of Mexico by the end of November.
Bring yourself up-to-speed on the latest developments in this evolving market with this handy timeline below. Then be sure to download your free copy of The Road to Liberalized Fuel Markets in Mexico for complete historical perspective, plus an updated collection of key OPIS news articles and analysis.
Want more insight into the evolving Mexican fuel market– plus an expanded timeline? Be sure to download OPIS' free primer The Road to Liberalized Fuel Markets in Mexico for an up-to-date look at key developments.