On June 15, 2017, the Energy Regulatory Commission (“CRE”) authorized improvements to the Mexican Official Standard NOM-016-CRE-2016 “Oil Product Quality Specifications”

The main purpose of the modifications approved by CRE is to increase competition among the fuel and diesel markets, derived from the opening of the sector to private investment, in which competitors have started importing and offering a variety of gasolines.

Some of the most relevant modifications of the norm, are:

a. Option to import gasoline with the quality applicable in United States of America is allowed, which facilitates the entrance of new quality products.

b. Products that enter the country must comply with the specifications required by the Complex model of the Environmental Protection Agency of United States of America.

c. Importation of gasoline with sulfur levels of up to ten parts per million is facilitated.

d. New competitors may add their gasolines in the place that results more convenient, as long as it does not represent any risk no the country’s infrastructure.

e. Increase in the percentage of ethanol in gasolines, from six to ten percent in all of the country is allowed, except for metropolitan zones of the Mexican Valley, Guadalajara and Monterrey.

As such, modifications to the norm will allow importation of gasolines that currently are commercialized in United States of America, with the quality applicable in such country, eliminating obstacles for new participants in the Mexican market.