Gas Bienestar, ineffective and AMLO anti-competitive proposal says Coparmex

The government of Andrés Manuel López Obrador returns to the monopolies of the past with a parastatal like Gas Bienestar, considered Coparmex.

The Employers’ Confederation of the Mexican Republic (Coparmex) warns that the intention to lower the prices of LP gas with the creation of the parastatal Gas Bienestar, as proposed by the President of the Republic, is unfeasible, anticompetitive and ineffective because it does not solve the problem background.

“With the low production and the high volume of imports, the proposal to offer gas at a lower price is unfeasible unless subsidies are used as in the past, where Pemex absorbed the variations in international prices, ” says the agency to charge of José Medina Mora Icaza.

The proposal to create a company to distribute liquefied petroleum gas (LP) at a lower price than what is offered in the market is a violation of the principle of equality that should govern among participants in the energy sector, says the employers’ union.

“At Coparmex we warn that the eventual creation of Gas Bienestar distorts the market and grants an exclusive and undue benefit to Petróleos Mexicanos (Pemex) compared to other gas trading companies that legally participate in the sector at the national level,” he adds.

“The aim is to solve current problems with supposed old solutions that have historically proven to be ineffective that end up affecting public finances,” explains Coparmex.

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On June 7, President Andrés Manuel López Obrador announced the creation of a state company in charge of distributing gas at competitive prices, which will be called Gas Bienestar, while a maximum price will be set at the cost of sale.

The president indicated that this is a response to the high prices of this fuel above inflation, an action that he considered unfair since Pemex sells gas at low prices; in addition, he reproached that there is little competition in the sector.

On the other hand, last March, the Federal Economic Competition Commission (Cofece) initiated a lawsuit against LP gas companies allegedly involved in monopolistic practices, as arrangements with the aim of manipulating prices.

Similarly, Cofece has an investigation open to determine if there is effective competition in the gas distribution market.

“We are in favor of citizens having the best services and at the best price; However, we consider that if this measure were to take place (the creation of Gas Bienestar), it would increase restrictions, further limit the participation and operation of gas companies in Mexico and would not offer a real solution to the constant escalation of prices that are defined at the level. international ”, says Coparmex.

The agency comments that the López Obrador government must be clear that Mexico produces 38% of the gas that the country consumes and the remaining 62% is imported.

Pemex does not have the capacity to produce the amount necessary to satisfy national consumption, as well as to subsidize the consumption of fuel for the general population, as it will further aggravate the finances of the state company and would result in an anti-competitive practice, adds Coparmex.

“A real solution would be to promote national production, take advantage of the country’s gas reserves and enable more companies to participate in increasing the supply, which would naturally translate into lower prices,” says the business organization.

“Our country requires investments in health, security, education, and economic reactivation, among other sectors; the right thing is not to allocate resources to grant subsidies when they are so necessary for those items ”.

“These are resources that could be saved by increasing competition and the supply of fuels. We want to move towards strengthening the energy sector where there is a fair and legal competition that allows us to have better prices and products, ”the group pointed out.

The government of Andrés Manuel López Obrador continues with its energy policy of returning to the monopolies of the past, a practice that undermines free competition, affects the capacity of companies, and inhibits the arrival of new investments, and leaves Mexico out of the global market. accuses.

“At Coparmex we consider that the creation of Gas Bienestar represents a harm against LP gas distribution companies that are legally established and comply with the regulation in addition to paying their taxes,” said the employer’s organization.

Source: milenio.com, eleconomista.com.mx, forbes.com.mx

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