Mexico | Discriminatory treatment and obstacles to competition

Summary

The measures taken by the Ministry of Finance and Public Credit and the Tax Administration Service represent discriminatory treatment of private companies with anti-competitive effects.

Key points

• Key points:
• The measure taken by SHCP has anti-competitive effects by generating uncertainty in investments (since it implies a change in the rules of the game ex-post), limiting the possibilities of competing in the market and granting exclusive advantages to Pemex. Limiting the ability of private companies to decide the most efficient point of import artificially raises the costs of supplying their network of service stations and serving customers in other industrial sectors
• The discriminatory treatment and suspension of permits go against the principles under which the fuel market was opened in 2017 and the recommendations of the Federal Economic Competition Commission
• The measures will influence the decision of private companies whether or not to expand their operational capacity in the supply chains to ensure the supply of gasoline and diesel to service stations. What will constitute a detrimental effect of the measure in the present and future of private companies in the sector

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