Region/Countries: Mexico, North America Industry: Other Date: November 2020

Why this is important to Wisconsin businesses: Wisconsin companies can help supply the fuel dispensing equipment releases and monitors that are needed.

There are opportunities for Wisconsin companies in Mexico’s market for fuel dispensing equipment releases and monitors. These dispensers are used to pump liquid fuels such as gasoline, diesel, oil or kerosene into a vehicle, storage tanks or portable containers. Gaseous fuel dispensers may refuel hydrogen or synthesis gas-powered vehicles or machinery, or may be used to move gases from one location to another. The most potential lies in the market for retail fuel distribution, but most of the new companies that distribute fuel acquire the complete equipment, and there are currently no statistics on the demand for nozzles and hoses, since this is a new market that has emerged within the last two years. Prior to Mexico’s energy reform and the opening of the market for the private distribution, fuel was distributed solely by PEMEX, and therefore, equipment replacement depended entirely on the institution and was not a competitive process.

In Mexico there are 11,774 gas stations, of which 18.81% are from brands other than PEMEX. The Mexican Association of Gasoline Entrepreneurs (Amegas) pointed out that through the end of 2019, approximately 10,000 service stations, or 85%, had not been able to update or change dispensaries in order to comply with the Official Mexican Standard (NOM), which could mean the massive closure of gas stations affecting the dispatch of fuel. Nationally, there are 12,525 service stations obligated to comply with NOM-005-SCFI-2017, which aims to update the electronic part of dispensaries or replace them completely in service stations. According to Amegas, the delay is due to the fact that manufacturers and suppliers of this equipment do not have sufficient capacity to meet demand, making it impossible for service stations to comply. The National Organization of Oil Dealers (Onexpo) reported that of the total number of service stations, there are a total of 63,000 dispensaries, of which 10,950 have been updated and 2,300 have been replaced, which adds up to only 21%--creating an opportunity for Wisconsin companies to assist.