Gas Bienestar to Launch while LP Prices Rise AgainBy Cinthya Alaniz Salazar | Mon, 08/23/2021 - 15:17
For the fourth consecutive week the Energy Regulatory Commission (CRE) has raised the LP gas price ceiling to MX$21.99 per kilogram between August 22 and 28, representing a one percent increase from last week. This comes right before President López Obrador’s state company, Gas Bienestar, is to officially launch at the Añil Storage and Distribution Terminal (TAR) in Iztacalco, Mexico City on August 27.
By this standard, a 20 kilo LP cylinder will cost Mexican households a maximum of MX$439.8 pesos, a MX$4.4 increase from last week when it stood at MX$435.4. Although all 16 of Mexico City’s municipalities have the same maximum price, if distributors choose, they can sell below the price established by the CRE. At a national level, since maximum prices were set, the average price of LP gas went up from MX$22.61 to MX$23.13 per kilo, pushing the max price by 2.28 percent in just one month.
Currently, the Bienestar program counts with MX$600 million (US$29.4 million) in funding, and it is to be administered by PEMEX subsidiaries, Mex Gas International and MGI trading. Initial start-up operations will be led by PEMEX CEO, Octavio Romero Oropeza who verified that after operational tests, at least during the first stage, he expects to oversee a filling capacity of 4,800 cylinders per day. Meanwhile, Mexican Company, MGI Asistencia Integral has been hired to run personnel operations.
When the project was initially announced on July 7, specialists wondered if the state would be able to meet their self-imposed three month deadline considering all the logistics and permits necessary to get the company running and operational. Now, less than two months later, it appears to have gathered all the necessary documentation, despite projections saying it would take the state a year to gather all the necessary documentation in compliance with all the regulations established by the law. Nevertheless, according to inquires by Energía Debate, neither PEMEX, the Security Energy and Environment Agency (ASEA) nor the Energy Regulatory Commission (CRE) has commented on the status of the permits that each agency issues according to their powers.