Mexico: COFECE looking to rub out restrictions on gas stations

Mexico’s Federal Commission for Economic Competition (COFECE) has presented a document of opinions to various state and municipal governments, the Mexico City government and local congresses and legislatures, calling for an elimination of serious restrictions to the establishment and operation of new gasoline service stations.

COFECE looked at 319 regulations around the country’s 32 states, focusing on 54 municipalities that stand out for their economic development and number of inhabitants. The agency identified several serious regulatory restrictions to competition, including limits on minimum distances between service stations.

The report reveals a low number of service stations when compared to international peers. For example, Spain has an average of 2,890 vehicles per service, station, while the USA has 1,640 vehicles per station. By contrast, Mexico has 3,270 vehicles per service station on average. For this reason, and to counter the negative effects of these obstacles to competition on the working of local gasoline markets, the Commission has recommended the elimination of regulations that impose minimum distances between service stations, as well as regulations demanding minimum surface areas for operating these establishments, and generally bringing local ordinances in line with the new Federal norms.

Full Content: Sol de Zacatecas

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