The Mexican auto transport sector faces a new challenge: the disappearance of the Energy Regulatory Commission (CRE) and the creation of the National Energy Commission (CNE), a measure that will bring with it significant changes in fuel regulation, directly affecting transporters with self-consumption stations, since the new regulations would force these actors to quickly adapt to stricter controls.

Marcial Díaz Ibarra, from QUA Energy and an energy sector specialist, explained to T21 that “the Hydrocarbons Law, which regulated the entire oil logistics chain, is going to disappear and now, with this commission, we must see how it will be regulated.”

The specialist estimates that there will be some regulatory improvements, “but they will not go against the way they were regulated, where activities will have to continue to be permitted.”

He commented that the activities will be reviewed by the CNE, as the CRE had been doing.

“We hope that it will now have greater growth and greater operational capacity to be able to review and implement the projects that are pending and those that already exist,” said Díaz.

Transporters at the crossroads, investment and rigorous supervision

The new fuel regulations impose key challenges for transporters with self-consumption stations. Those who consume more than 75 thousand liters will have to invest in certified volumetric controls, which will increase their operating costs.

“What we see is that they are regularizing a part of the supply chain that was in limbo because they did not have a permit, and now they are imposing a regularization whether they have a permit or not, just for the simple fact of having self-consumption,” explained Marcial.

Staff training and internal adjustments will also be required to ensure compliance with the new regulations.

This regulatory change is part of a package of reforms promoted by President Claudia Sheinbaum , who signed a set of secondary laws focused on “strengthening” Petróleos Mexicanos (Pemex) and the Federal Electricity Commission (CFE) .

“The public sense of CFE and Pemex as guarantors of energy supply and national sovereignty is being restored,” Sheinbaum said at a morning press conference on January 29, 2025.

Among the reforms, the Law of the National Energy Commission stands out , which will be responsible for regulating the entire production chain of hydrocarbons and petroleum products .

According to Energy Secretary Luz Elena González Escobar, these reforms “are the foundation that was missing to guarantee a strong, reliable, sustainable energy sector, but with national sovereignty and social justice at its core.”

The future of self-consumption and transportation in Mexico

Despite initial challenges, the implementation of the CNE could mean improvements in the regulation of the hydrocarbon sector.

“Every regulation always has a positive aspect. The issue of fuels in Mexico is a necessity,” explained Marcial.

He commented that despite the regulatory changes , the country will continue to depend on diesel and gasoline, so it will be key to observe the new collaboration schemes between the government and the private sector for the development of infrastructure.

According to Marcial Díaz, this is a recognition that the government cannot do it alone and needs the private sector.

“It would be very risky to talk about details right now, but let us assume that all this will not be detrimental to the regulated sector, but on the contrary, they will be able to take advantage of the experiences they have already had and fill the gaps that exist in order to seek regulatory improvement for the benefit of the sector,” concluded Díaz.

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Luis Méndez Jaled, national president of the Mexican Chamber of the Construction Industry (CMIC) , expressed his concern about the recent approval in the Commission of Constitutional Points of the Chamber of Deputies that puts at risk the autonomy of several fundamental regulatory bodies in supervision of infrastructure projects in Mexico.

In this sense, he stated that the initiatives that seek the elimination of autonomous bodies such as Cofece , IFT , INAI , CONEVAL , CNH , CRE and MEJOREDU could affect the independence and effectiveness of decision-making for the implementation of key projects for the development of the country.

“It is crucial that these bodies continue to operate autonomously to ensure transparency and the correct execution of infrastructure projects,” said Méndez Jaled.

He stressed that the autonomy of these organizations is essential to comply with Mexico’s international commitments and promote foreign investment.

Regarding road and bridge infrastructure , Khaled made an urgent call to increase investment in the maintenance and improvement of the country’s road network, as he explained that only one in every three kilometers of road is in good condition.

He warned that between 20 and 30 billion pesos (mp) annually would be needed for the next six years to overcome the current crisis .

Additionally, the CMIC authority asserted that although Mexico has a wide network of clinics, hospitals and schools, many of these centers urgently require rehabilitation and maintenance work.

In his proposal, Méndez Khaled emphasized the importance of significantly increasing the resources allocated to these areas, aligning with the recommendations of international organizations.

The president of the CMIC also called on the authorities to consider public-private investment mechanisms and the creation of specific funds that guarantee the continuity and sustainability of social infrastructure projects.

He also highlighted the need to adopt international best practices in the construction of schools and hospitals, with a sustainable vision that promotes innovation and the development of resilient infrastructure.

Regarding President Andrés Manuel López Obrador’s announcement to pause the relationship with the embassies of the United States and Canada , Méndez Khaled mentioned that the issue of embassies and the decisions that affect these institutions generate uncertainty.

He expressed that it is an issue that, although it falls outside the direct scope of the CMIC, could have important implications in the future, especially with the opening of issues such as the Treaty between Mexico, the United States and Canada (T-MEC) in 2026.

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The potential dissolution of the Energy Regulatory Commission (CRE) and the National Hydrocarbons Commission (CNH) as Autonomous Constitutional Bodies (OCA), with a proposal to transfer their functions to the Ministry of Energy (Sener), has created a climate of uncertainty in the energy sector. This situation is particularly concerning given the imminent review of the CRE’s NOM-016 and the upcoming enforcement of NOM-044.

NOM-044-SEMARNAT-2017, which will take effect on January 1, 2025, mandates that only cargo vehicles meeting Euro VI / EPA 10 standards can be sold. These standards require the use of ultra-low sulfur diesel (DUBA). However, Mexico’s national production capacity for petroleum products is limited, leading to a reliance on fuel imports, primarily from the United States. In the context of nearshoring, this situation is further complicated by the lack of DUBA availability across the country, as noted by Carlos Vallejo, founding partner of QUA Energy Consulting, in an interview.

This combination of factors presents a significant challenge for the industry, which must comply with stringent regulations in an environment of regulatory uncertainty and limitations in fuel supply.

Vallejo explained that, although there is an appetite for acquiring new units that comply with the regulation, the fact that engine specifications are more demanding in terms of fuel supply presents a challenge due to the uncertainty surrounding the distribution of ultra-low sulfur diesel (DUBA). He also highlighted the need for the authorities, specifically the Ministry of Energy (Sener), to properly monitor and address the relevant reviews of the CRE’s NOM-016 (Quality Specifications for Petroleum Products).

“We see that PEMEX is unable to supply service stations with DUBA. Over the past five years, we have witnessed a series of extensions that reflect the lack of necessary infrastructure in the six refineries, and the modernization processes remain incomplete. This prevents the state-owned company from producing fuel that meets the required sulfur specifications in parts per million. It is unlikely that they will complete the necessary adjustments in the coming months to effectively supply the fuel,” Vallejo detailed.

Given the possible reconfiguration of authorities and the dissolution of the CRE, the specialist mentioned that there could be another extension of NOM-016 until all related legal and regulatory bodies have been modified. Although these processes would take time, one option is for the Ministry of Environment and Natural Resources (Semarnat) to step in and prioritize the issue, ensuring that the necessary reviews are conducted.

On the other hand, Vallejo pointed out that even if the CRE is not dissolved, the problem of clean diesel distribution will persist because PEMEX is not prepared. In this context, a joint importation effort between the state-owned company and fuel importers could meet the demand. “That’s why it’s important to open up new permits to ensure that the necessary volumes can be supplied,” he stated.

Finally, Vallejo emphasized that given the potential variation in operational costs for transport and logistics companies, and considering that fuel expenses are among the highest, it is crucial to create a climate of certainty because the costs associated with transporting goods ultimately affect everyone.

In this regard, “It is urgent for the authorities to take effective action to make the necessary adjustments, including reviewing NOM-016 and opening new service stations that supply DUBA,” concluded the founding partner of QUA Energy Consulting.

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To date, the capacity of the National Refining System (SNR) does not allow it to meet the quality conditions of Ultra Low Sulfur Diesel (DUBA) . By 2019, of the six refineries that the country has, practically four were or were in the process of being maintenance or in the reconditioning phase, today the situation is not very different.

In this sense and regarding the entry into force of the update of NOM-044 (referring to emissions from diesel engines) of the Secretariat of the Environment and Natural Resources (Semarnat), which determines that starting in 2025 only market vehicles in Mexico with Euro VI and EPA 2010 technologies, Carlos Vallejo, founding partner of QUA Energy Consulting , says that the SNR is working at 40% of its capacity, although at certain times there is a production peak that sometimes helps to have certain types of oil products.

“Strictly speaking, DUBA diesel is a product that will not be able to be supplied due to the specific conditions of the six refineries in the country. What we are going to see in the future is a kind of additional extension. Although the transporters have an interest in the sale of this product, including for issues of equipment policies because some are affected because they are not respecting the guarantees because UBA diesel is not supplied,” Vallejo assured.

The specialist explained that once the new administration takes office there will be greater openness to review and make a modification to NOM-016 of the Energy Regulatory Commission (CRE) that details the quality specifications of petroleum products.

Vallejo advocates that the associations and chambers linked to road freight transportation, as well as the manufacturers of heavy commercial vehicles, have close communication ties with the institutions in charge of the issue and even with the new science and technology agency.

“This would push us to work together and get the issue unblocked, but this more than a political will, in the end the person who materializes the issue is Pemex , if the parastatal does not have the capacity to produce and supply UBA diesel, at least in geographically strategic areas. “it will not be possible to meet the objectives,” he stated.

The situation opens a window of opportunity for fuel importing companies that could import a greater quantity of UBA diesel to satisfy demand.

“Strictly speaking, the renewal of the freight transport vehicle fleet and even the growth of fleets due to the effects of nearshoring is driven to a certain extent by compliance with the standard, however, due to technical issues the SNR has not been able to achieve it. and in the short term it is not seen as a reality that it will be achieved,” he concluded.

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