On Tuesday, Mexican state oil company Petroleos Mexicanos (Pemex) announced the agreement to establish a new subsidiary to sell petroleum products, gas, and petrochemicals domestically.
The new subsidiary will be headed by Pemex’s current CFO Alberto Velazquez.
Pemex aims to find a bigger share of the local market and would not lead to higher costs for the company.
Mexico’s President Andres Manuel Lopez Obrador is adamant to roll back the previous administration’s will to open up the country's energy sector to foreign and private producers. He has said that he wants to revive both Pemex and state power utility Comision Federal de Electricidad (CFE).
The American Petroleum Institute (API) criticized the move as it would likely undermine investor confidence and violated Mexico's trade commitments.
