Mexico: Competition between gas stations picks up

Competition in the gas station service market in Mexico increased this week with the opening of the first US Gulf station, as well as the second station for Swiss-Mexican consortium G500 Network.

According to data from former state-monopolist Pemex, at the end of August this year the total number of service stations in the country was 12,121, of which 11,735 gas stations operated under the Pemex franchise, or approximately 96% of service stations.

Competition this week increased as a consortium between one of the largest fuel marketers in the world, the Swiss Glencore, and the Mexican group G500, called G500 Network, opened its second service stations in as many months. Meanwhile, Britain’s BP reported this week the opening of their first service station in Tijuana, Baja California.

Mexican authorities expect to have at least 6,700 establishments run by companies other than Pemex by 2021 in addition to a potential franchise switch by 1,400 gas stations currently operating under the Pemex franchise.

Full Content: El Economista

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