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Small gas station owners warn price caps could force closures
๐Ÿ‡ฒ๐Ÿ‡ฝ Mexico /Economy & Trade

Small gas station owners warn price caps could force closures

From El Universal · (8m ago) Spanish Critical tone

Translated from Spanish, summarized and contextualized by DistantNews.

TLDR

  • Small gas station owners in Mexico warn that voluntary price agreements between the federal government and major corporations could lead to business closures.
  • They argue that these pacts benefit large corporations with economies of scale, leaving smaller businesses unrepresented and struggling with reduced profit margins.
  • Concerns exist about potential government intervention or occupation of gas stations if supply is deemed at risk in certain areas.

Small gas station owners in Mexico are sounding the alarm over federal government agreements that cap fuel prices, fearing these voluntary pacts will drive them out of business. These agreements, struck between the government and major fuel corporations, are seen as unfairly benefiting large players with greater economies of scale, leaving independent owners struggling to survive.

El principal negocio era la gasolina magna y lo limitaron hace un aรฑo; ahora en el diรฉsel nos castigaron. En las reuniones que tienen los grandes empresarios con el gobierno, a las que no podemos asistir, nos consideran como si tuviรฉramos el poder que tiene Oxxo con sus estaciones.

โ€” Hรฉctor HernรกndezA gas station owner from Jalisco expresses frustration over price caps and lack of representation in government negotiations.

Hรฉctor Hernรกndez, a gas station owner from Jalisco, expressed frustration, stating that while the "main business was magna gasoline and they limited it a year ago," now "diesel has punished us." He highlighted the disconnect, noting that "in the meetings that big businessmen have with the government, which we cannot attend, they consider us as if we had the power that Oxxo has with its stations."

The situation is particularly precarious for those in smaller towns. Hernรกndez warned, "We are going to reach the point where this becomes unsustainable and, if I close, there is a law that says if I put the supply at risk, as I am in a small town, the government can say: 'come here.'" This highlights a potential government takeover of businesses under the guise of ensuring energy supply, a move that could disproportionately affect smaller, independent operators.

Vamos a llegar al punto en que esto se vuelva insostenible y, si cierro, hay una ley que dice que si pongo en riesgo el abastecimiento, como estoy en pueblo chico, el gobierno puede decir: โ€˜venga para acรกโ€™.

โ€” Hรฉctor HernรกndezA gas station owner from Jalisco warns of potential business closure and government intervention.

Eduardo Garcรญa, another owner, lamented the reduced profit margins, stating, "Now everything is for current expenses, that's why there is no investment in the sector." He also described intimidation tactics, mentioning that "they call us to threaten us that they are going to send us to Profeco and put up banners, etc." This paints a picture of a regulatory environment that, while ostensibly aiming for price stability, appears to be squeezing smaller businesses and leaving them feeling unheard and threatened.

Ahora todo es para gasto corriente, por esto no hay inversiรณn en el sector. Nosotros empezamos hace 56 aรฑos, y no nos sentimos representados por nadie. Lo que es bien preocupante son los asesores de Pemex. Todo a travรฉs de asesores: nos llaman para amenazarnos que nos van a mandar a Profeco y poner mantas, etcรฉtera. Nosotros ahora estamos cometiendo el crimen de defendernos.

โ€” Eduardo GarcรญaAn owner from Jalisco describes reduced profit margins and intimidation tactics.
DistantNews Editorial

Originally published by El Universal in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.