Mexico’s state-owned oil producer Pemex plans to stop producing premium and ultra premium gasoline in its refineries.
The higher-grade fuel will be instead imported, the Energy Ministry announced.
More than five million vehicles in Mexico require premium gas, according to officials.
Pemex plans to import 103,000 barrels per day of Premium Ultra Low Sulfur Content at $88.29 per barrel and 3,000 more barrels of Premium at $83.32.
Between December 2018 and January 2019 state-owned Pemex registered a 67% drop in Premium fuel production. The reduction comes as Mexico continues to open its energy markets to outside companies.
“If we consider that Pemex has already lost 28% of the market since private oil companies started to operate two years ago, as it lacks the capacity to compete with the newcomers, it is likely that Pemex will lose at least 50% of the market share within two, maximum three years,” Oilnova CEO Antonio Roldán told El Norte.
Of 12,551 service stations in Mexico, 2,470 are operated by private brands such as Shell, BP, Chevron and Exxon, according to the National Organization of Petroleum Exporters.
Pemex is one of the largest petroleum companies in the world. It is a major source of revenue for Mexico’s federal government, contributing as much as one-third of the national budget.
For the latest refining and petrochemical industry related videos, subscribe to our YouTube page.