PEMEX’s presence in the gasoline market is slowly receding to make way for new investors looking to take advantage of Mexico’s gasoline consumption of 823,079 daily barrels as of 2016. The liberalization of the energy market has allowed private companies to start competing in the gasoline market and new ventures are already appearing throughout the country. The latest entrant is non other than the largest fuel retailer in the world. With 43,000 stations across 80 countries, Shell has now opened its first gas station in Mexico as part of its growth strategy to enter high-growth markets including India, China Indonesia and Brazil.
“This is a major milestone for Shell and shows our ongoing commitment to Mexico. As the fifth-biggest consumer of gasoline in the world, it is an important and growing market,” said István Kapitány, Shell’s Executive Vice President of Retail in a statement issued in the company’s website. “We have been present in Mexico for more than 60 years, but this is our first opportunity to improve Mexican motorists’ journeys through our unique retail experience.”
This first station located in Tlalnepantla, State of Mexico is just the first of a large investment plan Shell has for the country. The company expects to invest approximately US$1 billion over the next 10 years to expand its retail network. Although it cannot yet bring its own gasoline, Shell has already released its two brands Shell Power and Shell V-Power (equivalents to Magna and Premium gasolines, respectively), which will include the company’s own additives. The company has also launched a new convenience store concept, which according to the company will offer gourmet coffee, fresh food and free Wi-Fi.
“The opening of fuel stations is important for Mexico, given that there are currently just 11,400 service stations, each serving an average of more than 3,000 vehicles a day,” said Joaquín Coldwell, Minister of Energy, at Shell’s station’s opening ceremony.
The information used in this article was sourced from Shell and SENER.