The Patronal Confederation of the Mexican Republic (Coparmex) said that the artificial control of LP gas ordered by the Government of Claudia Sheinbaum generates shortage, decrease in investment and opens the illegal market in Mexico.
“Artificial price control generates adverse effects, such as shortage, reduction in investment and growth of informal markets that violate consumers’ safety,” said the agency led by Juan José Sierra Álvarez on Thursday.
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He added that the imposition of prices by the government for six months, without considering the real distribution costs, is putting the continuity of the service at risk and generating negative impacts in the sector.
According to the employers’ agency, price control reduces distribution coverage, affecting communities that depend on LP gas as the main source of energy.
He added that it also causes the expansion of the illegal market, with the incursion of groups dedicated to clandestine fuel distribution (huachigas), which increases safety risks and violates the legality of the sector.
He said that another of the effects of LP gas prices control is the loss of direct jobs, with effects for thousands of families that depend on this activity.
He said that there is a medium -term operational security risk, since the lack of economic viability limits the capacity of companies to renew and maintain their distribution infrastructure.
The business agency said that price control is a setback in access to modern energy, which could force some communities to resort to the use of firewood as an alternative, with negative consequences for health and the environment.
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“It is a priority to establish conditions that allow companies to operate profitably, complying with safety and quality standards for the benefit of consumers,” Coparmex said.
He pointed out that each month companies travel more than 60 million kilometers to ensure national coverage, which implies high operating costs in fuels, maintenance of floats, wages, insurance and safety regulations.
“Its efficient availability and distribution not only affect the quality of life of citizens, but also impact the competitiveness of key productive sectors,” he recalled.
The Confederation acknowledged that guaranteeing its access in fair and equitable conditions requires an environment that promotes investment, legal certainty and free competition.
“To preserve the viability of the service, it is essential that regulatory policies reflect the economic reality of the sector, avoiding distortions that compromise their operation,” he said.
He added that international experience confirms that free market is the best mechanism to guarantee fair prices and equitable conditions for consumers and companies.
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He pointed out that the “distribution rate” represents up to 50% of the final price of LP gas, so any adjustment should be based on technical and economic criteria that ensure the sustainability of the service.
