Mexico: COFECE calls for easing restrictions to increase number of gas stations

Mexican competition regulator COFECE has published a series of recommendations, intended to stimulate the establishment of more diesel and gasoline service stations throughout the country in a bid to increase competition, amid growing social tensions resulting from rising fuel prices. The agency called on local governments to do their part in eliminating several regulations which, the agency concluded, may hamper the growth of this fuelling network.

COFECE’s board has concluded that current restrictions serve to “limit the establishment and operation of service stations for direct sale of fuel to consumers. They restrict competition and offer advantages to incumbent stations.”

Among the measures identified by COFECE as problematic, and which it would like to see go out, are: minimum distance requirements between gas stations; specifications on the size, surface and characteristics required for the site which may limit different forms of services; and various ambiguous regulations regarding permits and authorizations. COFECE has estimated that the country could potentially sustain between 2 and 12 thousand new gas stations, contributing to the development of an effective and competitive market, with lower costs and prices for consumers.

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