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Mexico fines oil company for monopoly on delivery

August 26, 2013

MEXICO CITY (AP) — Mexico’s anti-monopoly commission says it has fined the state-owned oil company about $50 million for monopolistic practices because it requires private concessionary gas stations to take delivery of gasoline by union-operated trucks.

The national oil company Petroelos Mexicanos is known as Pemex. Under the constitution it has a legally recognized monopoly on oil and fuel production.

But the Federal Competition Commission ruled that monopoly should end once the fuel is sold, at the refinery gate. It says the union trucks are 50 percent more expensive and cost $76 million more per year than non-union ones. The government absorbs much of that extra cost through fuel subsidies.

Pemex said Monday it would appeal the ruling. The company said distribution is part of the constitutionally protected monopoly.

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