Judge Juan Pablo Gómez Fierro denied a provisional suspension to three companies that challenged the agreement of the Energy Regulatory Commission (CRE) that established the regulation of maximum prices for LP gas. The judge argued that granting the precautionary measure would allow the rise in prices in this area.
“For this District Court it is clear that there is a social interest in the execution of the claimed agreement, since it contemplates a temporary measure that seeks to stop the apparently unjustified increase in the price of liquefied petroleum gas to the end user, which is considered as one of the most important energy staples for Mexican families ”, he stated in his resolution.
The Second District Judge in Administrative Matters Specialized in Economic Competition, Broadcasting and Telecommunications, determined that although it is true that there is a presumption that the CRE does not have the provisions of the Hydrocarbons Law.
Because it established a regulation of maximum prices of liquefied gas without there being any prior declaration by the economic competition authority in relation to the lack of competition conditions in said market, “for the moment it must consider that the benefit that the company can receive from the execution of the acts claimed it is greater than the damage caused by failure to comply with said formality ”.
On July 29, the CRE published an agreement that establishes the regulation of maximum prices of liquefied petroleum gas sold to the end user, in compliance with the emergency guideline for the welfare of the consumer of liquefied petroleum gas, issued by the Secretariat of Energy, in order to protect the interests of end users.
He argued that in 2020 international reference prices increased 80.9% , and prices to the end user did so by 16.7 percent.
“By allowing us to identify that the high profit margins obtained by the permit holders who make sales to end users, have not been transferred to higher levels of investment and in turn to improvements in the development of the market,” the agreement indicated.