Days are numbered for Pemex's gas station monopoly

As part of Mexico's energy reform, state oil firm Pemex will relinquish its monopoly on gasoline and diesel sales sooner than expected, opening up the way for foreign firms to import the fuels and set up service stations.

The energy ministry (Sener) had announced in 2014 that the gasoline market would be opened up to private players before 2019. It will now be the energy regulatory commission (CRE) that will grant permits for gas station operations, rather than Sener.

US firm Gulf Oil announced last week it will be the first foreign company to compete against Pemex by opening gas stations in Mexico, with four stations due to open in June.

Gulf Oil will open its first stations in Mexico City, Monterrey and Guadalajara and another large city yet to be confirmed, and plans to open a total of 20 this year, its director for Mexico, Sergio de la Vega, was quoted by local media as saying.

He said the company hopes to own and operate around 2,000 service stations within three years, which would represent about 17% of the total.

The president of the American Chamber of Commerce in Mexico, José María Zas, was quoted by local newspaper Vanguardia as saying there are several US companies interested in entering Mexico's gasoline market.

The news will be welcomed by motorists, who have long bemoaned the short-selling of liters at Pemex stations.

Four out of 10 gas stations reportedly sell incomplete liters, according to consumer protection agency Profeco. Of the 2,359 gas stations verified by Profeco in 2013, 36% were found to be selling short measures.

Gulf Mexico's infrastructure director Felipe Luna Melo was quoted as saying that the company will act as an intermediary between refineries and customers, but will not be tied to one particular refinery. This would allow the company to buy fuel on the global market at the best price and offer competitive prices to Mexican motorists.

Mexico currently imports most of the gasoline and diesel sold at Pemex service stations, given the country's lack of refinery capacity to meet domestic fuel demand. Gasoline imports surpassed domestic production for the first time in 2014.

In preparation for the opening up of the sector, Pemex has begun a revamp of its service stations to offer more services, and signed an agreement with the national gasoline retail organization (Onexpo) to strengthen its gas station network.

Pemex last December opened its first gas station outside Mexico, in Houston (pictured), the first of five it plans to open in the Texan city.

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