Government gas company LPG starts operations in Mexico City


The new public LPG distribution company began operations in Mexico City on Tuesday.

Pemex CEO Octavio Romero announced that Gas Bienestar (Well-being Gas) would start delivering 20 and 30 kilogram gas cylinders to Iztapalapa, a sprawling working-class borough in the east of the capital.

“Mr. Mr. President, … on July 7, you announced the start of operations of the Gas Bienestar company within a period not exceeding 90 days. Today, 55 days after your order, we officially begin the work of the Gas Bienestar company. business,” he said during President López Obrador’s morning press conference.

Romero said that Gas Bienestar, created as a new division of the state oil company, will soon begin operations in Azcapotzalco, Gustavo A. Madero, Milpa Alta, Xochimilco and Tláhuac and will later expand to other boroughs of Mexico.

Appearing via video link from Iztapalapa, Mayor Claudia Sheinbaum said Gas Bienestar will be operating in all 16 boroughs by January. Romero said the goal is to supply gas to 1.2 million homes in Mexico City by this month.

Gas deliveries have started in Iztapalapa.

This number of customers would give the new distributor a 43% market share in the capital.

A three-day distribution trial which ended on Monday demonstrated strong demand for gas supplied by Gas Bienestar, with 98% of just over 9,500 available tanks sold.

Announcing the creation of the new state-owned company last month, López Obrador said gas prices were particularly high in the capital and for this reason Gas Bienestar would start operations there before expanding to other cities. other parts of the country. Prices across Mexico have risen “unjustifiably” beyond inflation due to a lack of market competition, the president said.

But Gas Bienestar will sell LPG – which most Mexican households use for cooking – at a low price, he promised.

Romero said Tuesday that the Pemex division will sell a 20-kilogram gas cylinder for 400 pesos ($20) this week, while a 30-kilogram cylinder will cost 600 pesos. These prices are nearly 11% below this week’s price caps set by the Energy Regulatory Commission.

Apart from the low prices, the head of Pemex highlighted three other advantages of buying gas from Gas Bienestar. First, each bottle sold will contain exactly the amount of gas it should, Romero said.

“To ensure there is no milking of these tanks, they will have an airtight seal,” he said.

Second, Gas Bienestar will deliver gas in new cylinders and rehabilitate the old ones it salvages by removing rust, changing their valves, painting them and labeling them with the state company’s logo, Romero said. Bottles that cannot be rehabilitated will be taken out of circulation, he said.

Third, the gas supplied by Gas Bienestar will last longer than other gases, the CEO asserted. “We take care of the quality of the gas. We have done tests against other brands and Bienestar gas has a greater calorific value,” Romero said.

With reports from Milenio


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