12142018Fri
Last updateFri, 07 Dec 2018 11am

New gas station brands cutting into Pemex’s stranglehold

The launch in Jalisco of Petro Seven marks another step in the realignment of Mexico’s gas station market, two years after major reforms opened up the energy sector to private participation.

pg5bPetro Seven is a northern Mexican-owned company operating in tandem with the 7-11 convenience store chain.  They hold the operating rights to 240 gas stations in Mexico.

Ribbon-cutting at the first of ten planned Petro Seven-branded gas stations in Jalisco took place recently at a gas station located in La Tijera on the southbound trajectory of Lopez Matoes Sur, 3.5 kilometers from the Periferico, in the municipality of Tlajomulco.

Under the 2015 reforms, gas station concessionaires are free to sever their ties with Pemex, and operate under their own brand without restrictions on the services and products they offer. They can also open new stations if they wish, although the locations are still heavily regulated.

Around 22 percent of gas stations in Mexico now operate under a brand other than Pemex, although the majority – including Petro Seven – still rely on the oil giant to supply then with their fuel.  With government fixing of the price of gas set to be lifted throughout the entire country at the end of November, the gas station market is heatting up as national companies such as Oxxo Gas, Petro Seven, Hidrosina, LaGas and Eco have been joined by multinationals Shell, BP, Exxon and others.

Petro Seven is currently operating in seven Mexican states and, unlike Pemex, offers customers loyalty points, coupons, pre-paid cards and its own range of lubricants among other services.   However, despite its “divorce” from Pemex, the firm has copied the colors of the former state monopoly: red, green and white.

Meanwhile, Pemex has announced the launch of a major image rebrand later this month.

 

 

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