Rocío Robles Serrano, president of the Mexican Association of Liquefied Gas distributors and related companies (AMEXGAS), warned that market distortion for frozen prices of LP gas and unfair competition of organized crime has caused the closure of 50 energy distribution plants used in Mexican homes
“I bring a count of around 50 plants throughout the country, which (have closed) for economic pressure and no longer reaches for the payment of expenses,” he told Forbes Mexico.
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He added that the distribution plants have taken out of their savings to keep the operating costs the last 7 months, but “there is already a point where there are not enough resources to maintain” the business afloat.
“A company is to earn money and not to be losing. Today the distribution plants arrive a point where the credits achieved does not reach them for the payment of expenses or only allows them to settle the liabilities and not the operations,” said the businesswoman.
The last 7 months by maintaining a frozen price of LP gas in Mexico, the plants have subsidized the distribution of energy but this caused an artificial market, since at the entrance of a winter season the ideal was a proportional rise and according to the international contributions of the energy, said the business representative.
Currently, 70 percent of the LP gas consumed in Mexico is imported and “we are not self -sufficient or we will be,” said Rocío Robles Serrano.
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The President of the Amexgas recalled that the price of LP gas is subject to international contributions, when it freezes in October 2024, the profit margin was reduced to the degree of being negative.
“The consumer benefits from a frozen price, but there is no company that endures loss of more than 7 months,” he said.
The Gasros representative asked the Ministry of Energy (Sener) to approve a profit margin of 4.25 pesos, since they only obtain one of 1.98 pesos.
“We are very insistent with the Ministry of Energy, when we tell them that when there is no margin of proper gain, market distortions are created,” he said.
The commission agents, who are those men truck with their own vehicle, “a commission no longer arrives because there is no to share by the distributor in the Valley of Mexico,” he said.
“If you do not give me commission, because I go with the stolen gas that there if they give me commission; we as legal distributors share a commission of 2 pesos, but right now where and the stolen gas gives up to 6 pesos per liter,” said Rocío Robles Serrano.
The business representative said that perverse incentives are being created so that the figures of the commissioner leave with stolen gas, since organized crime with the huachigas takes control of the market offering a cheap gas, then they will rise to prices, they deliver it with equipment that does not comply with the rules or safety.
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“There is no way for a permitier to stop investing in security, but what Amexgas’s members tell me tell me the plant,” he said.
Without an investment in the plant or maintenance of LP gas equipment, a time pump is converted: “Plants are already closing, because they cannot assume the risk of circulating with autotancies that have not had adequate maintenance, or even have to make renewal of the vehicle park,” concluded Rocío Robles Serrano.
