Judges suspend indefinitely the reform of the Hydrocarbons Law

This reform has generated controversy because it has been a siege to private companies. Today, two judges issued a suspension that applies to all participants in the fuel market.

Judges suspend indefinitely the reform of the Hydrocarbons Law
Photo by Chris LeBoutillier / Unsplash

Two judges specialized in economic competition suspended indefinitely the application of the reform to the Hydrocarbons Law, proposed by the Executive. Judges Rodrigo de la Peza and Juan Pablo Gómez Fierro granted a definitive suspension to the application of the modifications after a series of companies filed injunctions to reverse the modification to the law that impacts the hydrocarbons market.

Although only a few companies filed the Amparo request, the judges decided to suspend the measures in a general manner, that is to say, they will not apply to any of the participants with a permit to participate in the hydrocarbons market. The suspensions will be in effect for the duration of the Amparo trial.

The decision announced this Monday follows a series of provisional suspensions that were granted during the past week, which imply the beginning of the Amparo process. The reform to the Hydrocarbons Law is the first change to the Law promoted by the federal executive to modify the rules of the oil and other fuels market, to restrict it to private initiative.

The reform project was proposed by the executive and approved in both chambers of the legislature without major setbacks. Participants in the sector have accused that the ultimate purpose of the measures is to favor the state-owned oil company Pemex in the fuel market. However, the federal government has defended that the purpose of the modifications is to order the fuel market since many companies holding a permit do not carry out the committed activities.