On November 14, 2017, the Ministry of Energy presented the Public Policy on Minimum Stocks of Petroleum Products (the "Policy"), applicable to those economic agents that import, export, store, market, distribute and sell petroleum products to final users or service stations, as well as to refiners.
The Policy will allow Mexico to have strategic reserves of gasoline, diesel and jet fuel, to strengthen the supply of fuels to the population in emergency situations, as well as the construction of infrastructure for the storage of petroleum products, strengthening national energy security. Moreover, the general guidelines for the storage policy are provided, which will contribute to the development of a market with reliable supply of petroleum products, which will also generate certainty among its participants and the population in general.
Pursuant to the Policy, in 2020, minimum inventory volumes will be equivalent to 5 days of sales; in 2022, minimum inventory volumes will be 8-9 days of sales, and 9-10 days on a quarterly average. In 2025, the minimum inventory will be 10-13 days of sales and 12-15 days on a quarterly average.
Below are the minimum inventory volume targets provided under the Policy for 2020, 2022 and 2025 for each region:
The obligation to maintain minimum inventories shall apply to all the economic agents that market or distribute gasoline, diesel and jet fuel, either imported or domestic and that sell such products to final users or service stations. It is excluded from the above the liquefied petroleum gas and any other petroleum product subject to economic regulation that is not expressly referred under this paragraph.
The Policy establishes the obligation to report periodically production, import, export, sales and inventory statistics on a regional basis by product (i.e. gasoline, diesel, jet fuel, aviation fuel (avgas) and fuel oil). This obligation is applicable to the economic agents that import, export, store, market and distribute the products mentioned above. Such reports will be made in the manner indicated in the following table:
Our Firm will be happy to answer any questions.