Mexico limits permit terms for fuel retailers

Mexico's government has issued new rules limiting the duration of fuel market permits and eliminating renewals, tightening oversight of the energy sector.

The regulation, published on 3 October as part of the secondary legislation under the new hydrocarbons law, reduces the maximum term for new retail fuel station permits to 20 years from 30 years.

Permit renewals are no longer allowed. Instead, permit holders must submit a new application and meet all requirements to obtain a new permit.

The changes apply across the fuel value chain, including marketing, distribution, retail, transport and storage. Each activity now has a specific maximum term. Storage and distribution permits retain the 30-year cap, while commercialization permits are limited to two years, and import and export permits are capped at five years.

Under the previous law, the energy regulatory commission (CRE) — the regulator now replaced by the national energy commission (CNE) — could issue new retail fuel station permits for up to 30 years. Most were granted for that duration.

But since 2023, the CRE began issuing shorter-term permits, citing alignment with land lease contracts. Renewals were also limited to half the original term, according to Mexico's fuel station suppliers' association.

Under the new regulation, the CNE is still in charge of permit reviews and oversight of most of the fuels value chain in Mexico, but the energy ministry remains in charge of import and export permits.

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