ExxonMobil Plans To Open Its First Station in Mexico

After a long run monopoly of the oil industry by the Mexican government, the country has decided to end its monopoly by opening door to foreign investors.
In the light of this, Oil giant, ExxonMobil has decided to open its first station in central Mexico during the second half of 2017 with plan to open additional stations later in the year. The company also promised to invest $300 million in operations and marketing across the next 10 years.
For 75 years, Mexico’s state-owned Petroleos Mexicanos, or Pemex, was the only game in town. With the industry in decline, President Enrique Peña Nieto approved constitutional reforms that would allow international companies to bring in much-needed capital.
Martin Proske, Exxon’s director of fuels in Mexico, attributed Mexico’s energy reforms to the company’s south-of-the-border endeavor.
In March, BP (BP) became the first foreign oil firm to open a branded station in the country since the reforms. The company also announced plans to open 1,500 stations across the country over the next five years.
Mexico’s government, which controls gas prices, raised them 20% overnight in January because of the falling value of the peso. The move sparked violent protests that left at least six dead and 1,500 arrested. Hundreds of gas stations had to closed down for fear of looting.


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