Mexican energy regulator CRE has published maximum prices for the sale of liquified petroleum gas (LPG).
The new prices, which were announced last week, vary by state and municipality and can be accessed here. They range from 27.85 pesos (US$1.40) per kilogram for some municipalities in Durango state to 19.56 pesos per kilogram at their lowest (all prices include VAT).
CRE decided to apply price controls in the whole country last week after it was instructed to do so by energy ministry Sener via an emergency decree.
Susana Cazorla, a consulting partner on Mexican energy markets for SICEnrgy, told BNamericas that CRE lacked the appropriate methodology to establish the different kinds of segments that existed in the domestic LPG market. These are expected to be determined by competition watchdog Cofece in a report due before the end of the year.
“Cofece is yet to determine which are the relevant LPG markets. There isn’t a single market. There are different markets with different transportation, distribution, competitors, substitutes … The first thing would be to determine which are those relevant markets and explore in each one of them whether competition conditions exist. It’s not appropriate to say in all of Mexico these conditions do not exist,” Cazorla said.
Commercialization and transport prices will be adjusted weekly, and CRE will publish changes on its website. The maximum price will be inflation-adjusted every year, the regulator said.
Permit holders subject to the new regulation that refuse or fail to comply with the price scheme may lose their permits, CRE has said.
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