PROFECO Dismisses API “Discrimination” Complaints
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PROFECO Dismisses API “Discrimination” Complaints

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Peter Appleby By Peter Appleby | Journalist and Industry Analyst - Wed, 06/17/2020 - 17:41

Mexico’s Federal Consumer Protection Agency (PROFECO) summarily dismissed the claims of the American Petroleum Institute (API), representing companies including Chevron, ExxonMobil and Sempra Energy, of “discrimination” in the downstream sector, La Jornada reports.

On Monday, API had accused CRE of irregularities and inconsistencies in the granting of permits to American companies involved in various activities in the downstream end of the value chain, particularly in the retail side. These inconsistencies held up developments and were, said API Director Michael J. Sommers, in contradiction to the terms of USMCA, reported El Economista.

According to the newspaper, Sommers noted “difficulties obtaining permits for a variety of activities, including new or renamed stations, third-party storage facilities, imported fuels, liquid terminals and liquefied natural gas terminals.”

As an example, Sommers said CRE had taken more than the maximum 90-day period to grant approval for new gas stations and had asked for information for the permits to be approved which is outside of its regulatory scope, says El Economista. The director also complained that inspections of stations are carried out with the presence of Mexico’s National Guard, a military force that carries out law enforcement duties.

Yesterday, PROFECO head Ricardo Sheffield Padilla refuted those claims and stated that companies were treated fairly in Mexico regardless of their origins, reports La Jornada.

Sheffield said that PROFECO disagreed with API’s claims that some pumps at gas stations belonging to US companies had been closed for “minor or non-existent violations regarding the reliability of the pump and the hose in accuracy of measurement.” The PROFECO head also said that the National Guard is only required at gas station inspections when companies do not allow a free inspection.

Regarding the inspections, La Jornada quoted Sheffield as saying "It should be noted that they are obligated to allow this. The use of public force is avoided by complying with the law.”

Today, PROFECO announced the discovery at a gas station in Guemez, Tamaulipas of a device that allowed the gas station to sell incomplete liters to consumers. According to Televisa, the device “controls the relationship between the hose and the liter meter” so that consumers are led to believe they are buying a certain number of liters, when in fact, they are receiving less.

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