By KELIN DILLON
Two federal judges froze the monopoly granted to Mexico’s state-owned oil company Petróleos Mexicanos (Pemex) by reforms from the current government, led by President Andrés Manuel López Obrador (AMLO), reverting Pemex back to the same levels of competition with the private sector as standard in 2014.
AMLO’s National Regeneration Movement (Morena) introduced its final reforms to the Hydrocarbons Law (LHI) during the last session of Mexico’s Congress before June 6’s midterm elections, on May 19.
The judges, Rodrigo de la Peza and Juan Pablo Gómez Fierro, provisionally suspended 49 aspects of the LHI and the Agreement of the Energy Regulatory Commission (CRE) relating to the sale and commercialization of oil, petroleum and gases, which are expected to eventually turn into definitive suspensions.
The freeze will fix the asymmetric price regulations implemented by Morena’s reform that would give Pemex a leg-up over its private sector opponents in terms of competitive pricing.
Gómez Fierro said the suspension should have general effects to not provide undue influence to the company that the appeal for the freeze was filed by, Process Full.