Downstream oil in brief: is success in Mexican fuel retail in the pipeline for investors?
Mexico is an underserved retail market with a relatively small service station network of around 12,000 sites compared to its population of over 130 million people. This, combined with growing demand for transport fuels, makes it an attractive market for investment. It is particularly the case for those companies that are looking to secure product offtake from their refineries. Despite the obvious opportunities, there are challenges due to an underdeveloped and constrained midstream sector which is in need of investment. However, over time we expect to see this change which would make fuel retail in the country more profitable in the longer term.