Mexican government opens borders for foreign oil

Global Business

Mexican government opens borders for foreign oil

When it comes to gasoline, Mexican consumers are about to roll into a new era. For decades, only one fuel brand has been available. CCTV America’s Franc Contreras reports.

Mexican government opens borders for foreign oil

Mexican government opens borders for foreign oil

When it comes to gasoline, Mexican consumers are about to roll into a new era. For decades, only one fuel brand has been available. CCTV America's Franc Contreras reports.

Mexico’s state-run oil company, Pemex, has held a monopoly on all petroleum-based products, including gasoline.

Mexican President Enrique Pena Nieto recently announced in Houston that he’s taking key steps to open the fuel market here.

But one energy analyst says the government’s reliance on fuel taxes means prices will probably not decrease anytime soon.

Most Mexican drivers have heard the president’s suggestions that energy reforms will eventually result in better fuel prices.

Mexico’s fuel storage infrastructure, controled by Pemex, needs repairs and remains a barrier to opening the country’s gasoline market.

Foreign gasoline companies are not convinced the conditions are right to do business there. But that could change.

The Mexican government’s decision to allow gasoline to be imported from other countries is seen as a small step forward when this well-known Mexican brand, Pemex, is not the only gasoline available in this country.