Mexico’s Fuel Market Is Open, But the Imports Aren’t Flowing

06/28/16 Bloomberg

stock-footage-montage-of-clean-energy-fossil-fuel-pollutionSoaring fuel theft, violent protests over shortages and a lack of independent infrastructure have some investors questioning whether the Mexican gasoline sector is ready for a surge of U.S. imports.

The country enacted legislation in April allowing companies other than state-owned Petroleos Mexicanos to import fuel for the first time since the 1930s, nine months ahead of the January 2017 start date it had originally targeted for reforms. Mexico has since awarded permits to import a combined 135.6 billion liters (853 million barrels) of gasoline and diesel.

No fuel has been brought in using those 12-month permits, however, as the industry grapples with regulatory and logistical obstacles, according to Jose Angel Garcia Elizondo, head of Mexico’s national gasoline retailers association Onexpo.

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