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Mexico Probes Competition In LPG Distribution

By  |  May 31, 2021

The investigation branch of Mexico’s Federal Commission for Economic Competition (COFECE) has announced the launch of a probe to determine whether effective competitive conditions exist in the distribution of LPG gas nationwide, hoping to detect possible price-fixing agreements in the sector.

COFECE’s probe will focus on the sale and distribution of LPG gas, an important household fuel, in the form of portable cylindrical tanks and tanker trucks for delivery to homes and businesses with stationary LPG tanks. Therefore, distribution via gas pipelines or ducts is excluded.

The probe would, should the absence of appropriate conditions be detected, allow the sector regulator, the Energy Regulatory Commission (CRE), to begin the process for applying new regulations on prices and tariffs in the distribution of Liquefied Petroleum Gas.

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