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Trading and distribution
How are oil and gas resources traded in your jurisdiction and what (if any) regulations and procedures apply to oil and gas sales, distribution and marketing activities, both nationally and internationally?
The Hydrocarbons Law and its regulations govern trading, distribution and marketing activities. In order for a person to carry out any of the foregoing activities a permit must be requested before the Energy Regulatory Commission (CRE).
The terms and conditions of a trading permit will include the following obligations:
- to engage in contracts only with permit holders for transportation, storage, distribution and retail sale to the public services, which may be required for the performance of activities;
- to comply with the safety supply provisions that may be established by the Ministry of Energy;
- to submit the information required by the commission for statistical and monitoring purposes of the energy sector; and
- to abide to the guidelines applicable to the permit holders of regulated activities, regarding their relationship with persons that are part of their same corporate group or consortium.
Is oil and gas pricing regulated in your jurisdiction?
Yes, the Secretariat of Finance and Public Credit determines oil prices and the commission is in charge of the methodology for determining the maximum prices of natural gas for first hand sale.
In January 2017, pursuant to the Energy Reform Decree, gasoline prices will be released by the government and will be determined by market conditions.
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