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LatinNews Daily - 08 July 2021

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In brief: Mexico to create new state-run LPG distribution firm

* Mexico’s President Andrés Manuel López Obrador has announced plans to create ‘Gas Bienestar’ (‘gas well-being’), a new state-owned firm that will be dedicated to the distribution of liquified petroleum gas (LPG) in the country. López Obrador said that Gas Bienestar will supply LPG at a “fair price” after accusing private fuel distribution firms of charging high prices to consumers for the LPG that they get from the state-owned oil firm, Pemex. The president said that his government is devising a mechanism to set price ceilings for the LPG market to address this issue but that Gas Bienestar will also help to bring down prices by supplying the fuel at lower prices than its private competitors. López Obrador denied that the creation of Gas Bienestar seeks to force private firms out of Mexico’s LPG market, insisting that it simply seeks to make it more competitive to the benefit of consumers. However, some have expressed concerns that the initiative is another attempt by the López Obrador government to exert control over the country’s energy markets by limiting private sector participation.