State-owned Gas Bienestar Launches in Mexico City

State-owned LP gas company Bienestar formally launched this week in the Iztapalapa borough of Mexico City.

In an effort to counteract the “abusive” prices on LP gas for millions of Mexican families, Gas Bienestar is expected to help balance out the market by having PEMEX sell gas directly to users without the use of dealers and other third parties. PEMEX Director Octavio Romero said the company will be delivering 20 and 30-kilogram cylinders, starting in Iztapalapa. No major incidents were reported during its launching. . Distribution will focus on areas where supply is short and economic need is greater. In explaining why Gas Bienestar was commencing operations in Mexico City, President López Obrador said “particularly high” prices in the city were the reason. 

Demand in Teotongo, Acatitla-Zaragoza, and Santa Catarina was the highest, said Fadlala Akabani, Mexico City’s Minister of Economic Progress, who also commented that the service will have a positive impact in the local market, given that their prices will stick to caps set by the Energy Regulatory Commission (CRE). 

“Mr. President, on July 7 you announced the commencement of operations of the Gas Bienestar company in a period no longer than 90 days. Today, 55 days after your order, we’re officially starting the company’s operations,” added Romero during the president's daily morning news conference. Mr. Romero also said that operations in Azcapotzalco, Gustavo A. Madero, Milpa Alta, Xochimilco, and Tlahuac will soon begin, aiming at operating in every borough and distributing to 1.2 million homes by January, as revealed by Mexico City’s Mayor Claudia Sheinbaum. Should those numbers come through, the market share for Gas Bienestar will close at 43 percent. 

The current launch distribution target is 4,900 daily cylinders, with the ultimate goal of having a whopping 9,800 daily cylinders, to be delivered by a 70-bus fleet distributed among 1,260 quadrants within the limits of the borough. An additional exchange service will also be available to users, with which they will be able to trade in old cylinders for new ones, with the intention to avoid accidents due to worn out equipment. These distribution numbers were based upon a 1,600-participant survey to determine consumption needs and expectations. A test run carried out earlier on Monday showed high demand for Bienestar gas, with close to 98 percent of all available tanks sold.