Mexico: “Enough” competition in LP Gas, say distributors

Luis Landeros, president of Mexico’s Association of Gas Distributors, has said that the market for liquefied petroleum gas in Mexico does not have any problems with market concentration, and has called on the Federal Commission for Economic Competition (COFECE) to clarify their concerns.

“Precisely in that sense we are making a proposal for the COFECE to define relevant markets, but for that we will have to continue talking …” explained Landeros, referring to the accusation made by the Energy Regulation Commission concerning potentially anti-competitive behavior in the distribution and sale of natural gas, which were notified to the COFECE.

Landeros pointed out that if one observes the experience of South American markets, where similar reforms have had more time to take root, the effects have barely been set in motion. He also added that, regardless of whether there are few or many participants, the amount of competition is sufficient. “there’s too many of us; You may have 15 large groups, but there are also small local companies.”

Full Content: Milenio

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