CRE Rejects 34.3% of Permit Requests in 2023

CRE rejected 34.3% of the permits requested for various activities in the oil market in 2023, as revealed by the analysis "Numeralia CRE 2023," conducted by QUA Energy Consulting. According to the analysis of the 694 received applications, the regulating commission approved 517 for activities including dispensing, transportation, and self-consumption.

Of the 177 denied permits, 74 were for dispensing, 29 for assignments, 28 for marketing, 14 for self-consumption, 11 for modification of dispensing, nine for transportation, seven for storage, two for storages, two for tanker ships, and one for dispensing at an aerodrome. Most of the authorized permits were concentrated in public dispensing with 438 and transportation permits with 56.

Marcial Díaz Ibarra, Director General, QUA Energy Consulting, expressed concern about the lack of dialog between CRE and those regulated, which could contribute to resolving issues in permit applications. Moreover, Díaz Ibarra pointed out that the regulator's refusal to engage in dialog with entrepreneurs negatively affects the resolution of permit applications.

The expert highlighted that, while CRE has argued that some files are not properly integrated, this should not lead to a high percentage of denials. Instead of closing the door to applicants, consideration should be given to training and support to address potential flaws in the permit application process to reduce the rejection rate. Díaz emphasized the importance of establishing open dialogue between CRE and permit holders to prevent 30% of applications from being rejected.

During a session in August 2023, CRE greenlit only 13 permits from a pool of over 7,000 requests. A comprehensive discussion of 23 topics took place, with merely one pertaining to oil products. Despite the mounting backlog persisting month after month, no permits for the public sale of oil products were approved. The session did address a legal matter, initiating an administrative sanction process within the hydrocarbons sector. 

Mexico's energy policy has undergone notable transformations in recent years, particularly under the leadership of President Andrés Manuel López Obrador. The current focus is on bolstering state control over the energy sector, advocating for increased involvement of state-owned entities, notably PEMEX and CFE, in energy resource exploration, production, and distribution. López Obrador's administration prioritizes national sovereignty and energy self-sufficiency, leading to measures that reverse earlier energy reforms, including canceling oil tenders and imposing a moratorium on new renewable energy projects, all to emphasize state control.