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ARTICLE · 21 MAY 2021

Amendment To Hydrocarbons Law Regarding Asymmetric Regulation Is Published

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On May 19, 2021, the second amendment to Mexico's Hydrocarbons Law was published in the Federal Official Gazette

MexicoEnergy and Natural Resources
Vera De Brito De Gyarfas
Vera De Brito De Gyarfas
Francisco Mendez
Francisco Mendez
Claudia Ramos
Claudia Ramos
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On May 19, 2021, the second amendment to Mexico's Hydrocarbons Law was published in the Federal Official Gazette, which concluded the legislative process on April 29, 2021, after a heated debate during a plenary session of the Senate (the "Amendment").

The Amendment ends the Energy Regulatory Commission's (Comisión Reguladora de Energía, "CRE") power to enforce asymmetric regulation in the hydrocarbon, petroleum products and petrochemical markets.

The CRE will no longer be able to regulate PEMEX's Firsthand Sales (Ventas de Primera Mano, "VPM") or the first transfer of ownership of PEMEX´s products to competitors, which required that the price offered by PEMEX be the result of a regulated and transparent methodology, based on internationally accepted practices in the petrochemical and hydrocarbon markets and subject to CRE's approval.

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