Mexico: COFECE recommends changes to PEMEX supply contracts

Mexico’s COFECE have emitted a series of recommendations for improving competition, directed against Pemex Transformación Industrial’s supply contract practices (commonly known as ‘first hand contracts’) and their practices concerning gasoline and diesel franchises.

PEMEX is the only legal purveyor of gasoline and diesel in Mexico, holding first hand and franchise contracts with over 11 thousand service stations. Most of these contracts were signed before the recent reform of Mexico’s energy and hydrocarbons laws.

Among several recommendations, the Commission’s observations should be adopted for all new and current contracts in order to increase competition in the gasoline and diesel supply, sale and delivery markets.

Full content: COFECE

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