MEXICO CITY (AP) — Mexican President Andrés Manuel López Obrador on Monday proposed one more legislation to weaken non-public companies and strengthen the hand of an inefficient state-owned firm, the most recent in a collection of measures aimed toward turning again private-sector involvement within the power sector.
López Obrador stated the proposed legislation is supposed to fight contraband gasoline imports. Mexico solely allowed non-public gasoline stations beginning in 2016, and so they rapidly took a big share of the market from state-owned Pemex, whose franchised stations have been recognized for low-quality gas and shorting prospects on the amount of gas delivered.
The president argued that among the non-public corporations that entered the market have imported gasoline with out paying taxes on it. These corporations could possibly be closed, their stations taken over and given to Pemex to run.
However López Obrador revealed one other motive behind the legislation — his nationalistic marketing campaign to finish gasoline imports. His pet initiatives embody constructing oil refineries, and he additionally needs to rein in international corporations that constructed wind and photo voltaic farms in Mexico.
“Now we rely on imports, which is one thing that’s going to alter by the top of this administration,” stated López Obrador. “We aren’t going to promote (export) crude anymore, as a result of we’re going to course of all of it in our nation, and we’re going to produce all of the gasoline we devour.”
“Now we have to be self-sufficient, these are strategic actions in order that Mexico can proceed to be an impartial and sovereign nation,” he stated.
Mixing the 2 points — tax evasion and power sovereignty — in a single legislation, with very imprecise language makes for an odd combine that enterprise teams say might result in de-facto expropriations.
The invoice now earlier than Congress would permit the federal government to grab non-public gasoline stations or terminals in case of “imminent hazard to nationwide safety, power safety or the financial system,” and provides them to Pemex to run.
The Mexican Institute for Competitivity, a suppose tank, stated in a press release that “in actuality, this is able to signify a direct expropriation,” and will chill the local weather for personal funding in Mexico.
“With the purpose of sustaining Pemex because the predominant participant within the oil sector, this invoice seeks to displace non-public corporations within the trade, beneath the specter of expropriating their amenities beneath the very unclear standards of nationwide safety, power safety or the financial system,” the group wrote.
López Obrador has already gotten Congress to cross legal guidelines to present the state-owned electrical energy firm choice over non-public renewable and natural-gas producing vegetation, although lots of the state-owned vegetation burn dirtier fuels like gas oil, coal or diesel.
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