Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Mexican judge rules against president's gasoline law

A judge in Mexico has issued an injunction against a law passed in April that allows the government to seize private gas stations or terminals in case of “imminent danger to national security, energy security or the economy,” and give them to the state-owed oil company to run

Via AP news wire
Tuesday 11 May 2021 04:21 BST
Mexico Gas Stations
Mexico Gas Stations (Copyright 2019 The Associated Press. All rights reserved.)

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A judge issued an injunction Monday against a law passed in April that allows Mexico s government to seize private gas stations or terminals in case of “imminent danger to national security, energy security or the economy” and give them to the state-owed oil company Pemex to run.

The ruling was the latest legal setback for President Andrés Manuel López Obrador who has already tangled with the judicial branch and regulatory agencies over initiatives that many critics say violate the country's constitution.

The government can appeal the injunction.

López Obrador says the law is meant to combat contraband gasoline imports, because he claims private imports of gasoline — which he dislikes on ideological grounds — often don't pay taxes.

Mexico only allowed private gas stations starting in 2016, and they quickly took a large share of the market from Pemex, whose franchised stations were known for low-quality fuel and shorting customers on the volume of fuel delivered.

The president argues that private companies which import gasoline without paying taxes on it should be closed, their stations taken over and given to Pemex to run.

But López Obrador revealed another motive behind the law — his nationalistic campaign to end gasoline imports. His pet projects include building oil refineries, and he also wants to rein in foreign companies that built wind and solar farms to produce electricity in Mexico.

López Obrador has already gotten Congress to pass laws to give the state-owned electric power utility preference over private renewable and natural-gas generating plants, even though many of the state-owned plants burn dirtier fuels like fuel oil, coal or diesel.

The same judge has issued an injunction against those rules, and López Obrador has publicly attacked him and other judges, suggesting they are in the pockets of private firms.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in