Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World

Page created by Ryan Franklin
 
CONTINUE READING
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
WWW. PETR OLWORLD .COM 								                          Issue 3 2016

FeatureS

Fuel Retail Revolution in Mexico
New Brand Players in Mexico
Gulf Fuel Retail International Update

  1st Fuel Retail Expo in Kuala Lumpur 2017

  PW Latin America 2017 Update

      INFORMING AND SERVING THE FUEL INDUSTRY GLOBALLY
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
PA R T N E R I N G
A   SUBWAY® Sandwich Shop, the #1 Franchise*,
    is a great fit for your location. You can become
a SUBWAY® franchisee or lease space to an
experienced SUBWAY® franchisee for an additional
source of revenue.

The SUBWAY® chain has simple operations and proven
control systems, floor plan flexibility and great fresh
food options for all day-parts. With portable made-to-
order sandwiches and salads, the chain is a recognized
leader and requires a low investment.

Whether you are looking to own and operate a
SUBWAY® shop yourself or lease space to an existing
SUBWAY® franchisee and earn rental income, the
SUBWAY® restaurant chain can offer a formula that
works.

For more information about the SUBWAY® chain
and how it can be the fresh solution for your location:
Call: Allison Morrow
800.888.4848 x 1736 or 203.877.4281 x 1736
E-mail: Morrow_A@subway.com
www.subway.com
SUBWAY ® is a Registered Trademark of Subway IP Inc. © 2016 Subway IP Inc.
*SUBWAY® is the #1 restaurant chain in total restaurant count with more locations than anyone else in the Quick Service Restaurant industry.
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
2

+ CONTENTS
                                                                06   The Mexican Fuel
                                                                     Retail Revolution
         SECTION 1: FEATURES

    04	World View
       Key stories from around the world
    06   The Mexican Fuel Retail Revolution
    12   New Fuel Retail Brands in Mexico
    14   Gulf Fuel Retail Update – International Developments

         SECTION 2: NEWS

        OIL COMPANY AND RETAIL BRAND NEWS
    16	Latin america
    21	Africa
    24 MIDDLE EAST
    27	EUROPE
    31 North AMERICA
    35	ASIA
    40 PW Malaysia News

         SECTION 3: PRODUCTS & SUPPLIERS

42       PRODUCT AND SUPPLIER NEWS
48       Case Study: Brenntag GmbH Berlin Fuel Terminal

         SECTION 4: INDUSTRY INFORMATION

50       PEtrolWorld Team
51       PEOPLE ON THE MOVE
52       NEXT ISSUE 4 – Outlook for 2017

         PetrolWorld Magazine online                            12   New Fuel Retail
                                                                     Brands in Mexico
         www.petrolworld.NET
                                                                14   Gulf Fuel
                                                                     Retail Update –
                                                                     International
                                                                     Developments

PETROLWORLD                                                                      Issue 3 2016
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
3

               + CONTACTS                                                               + EDITOR'S LETTER

               International Editor
               David Egan

               Contributors
               Bob Orr
               Daniel Seegers
               Paul Standard
               Karina Swette
               Sergio de la Vega

               Art Director
               Anja Coyne
                                                                                        Welcome to Issue 3 of 2016!
               Advertising Enquiries
               advertising@petrolworld.com                                              Asia and Latin America feature prominently in this issue.
               brian.kearns@petrolworld.com
                                                                                        Our main feature is Mexico. The first part ‘The Mexican Fuel
                                                                                        Retail Revolution’ is a contribution from Oliver Wyman on
               Accounts Enquiries
                                                                                        page 6. The feature is a basic overview and introduction to
               Dorota.Chojecka@petrolworld.com
                                                                                        what has been happening in that country. As a result of the
                                                                                        changes taking place in Mexico, the second part of our feature
               Subscriptions
                                                                                        on page 12 highlights some of the new players including Gulf
               sally.smith@petrolworld.com
                                                                                        Mexico, likely to be the first international fuel retail brand to
               or subscriptions@petrolworld.com
                                                                                        appear on the high street.
               Press Release / Editorial                                                The third part of our feature page 14 is an global update on
               pr@petrolworld.com                                                       Gulf Oil International, responsible for the Gulf brand entering
               or newsdesk@petrolworld.com                                              Mexico as well as the first Gulf fuel retail branded service
                                                                                        station in the Philippines (October 2016).
               Print
               Walsh Colour Print, Ireland                                              The Mexican fuel retail revolution is just one part of a
                                                                                        major transformation-taking place in Latin America. The
                                                                                        PetrolWorld Latin America Conference and Business Forum
                                                                                        2017 will be held in Panama next September 2017. Sponsors
                                                                                        will be announced in the next quarter.

               Published quarterly (four times a year) both the PetrolWorld
                                                                                        The PetrolWorld Daily News Service has been overrun with
               Magazine and the C-STORE executive Magazine, including                   news in the last quarter. Check out the news index of each
               their Supplements, are circulated to all key purchasing
               decision makers within the fuel value chain from Logistics               continent for Africa, Asia, Europe, Middle East, Latin America
               (distribution), through retail marketing to C-Store/G-Store              and North America.
               across the globe. Additionally the vast majority of key
               personnel within companies supplying to these retail brands
               are recipients.                                                          With the 1st Fuel Retail Expo taking place in Kuala Lumpur
               All material © 2016. No part of these publications or any other
                                                                                        next June 2017, we have added a Malaysian fuel retail news
               PetrolWorld material may be reproduced, stored in a retrieval            page to the Asian news section in this issue on page 40. Watch
               system or transmitted in any form or by any means without the
               prior written consent of the Publisher. Opinions and comments
                                                                                        out for a number of key announcements from PetrolWorld
               expressed herein are not necessarily those of the Publisher. All         over the coming quarter.
               rates are correct at time of going to print but are subject to change.
               Whilst every effort has been made to ensure that all information
               contained in these publications is factual and correct at time of        Enjoy the issue!
               going to press, PetrolWorld cannot be held responsible for any
               inadvertent errors or omissions contained herein.                        David Egan
                                                                                        International Editor
               Published by:                                                            PetrolWorld

                                                                                                      A Date for Your 2017 Diary

                                                                                                     Fuel Retail Expo 2017
                                                                                                     20th – 21st June, Kuala Lumpur
               David Egan Associates
               SW Wincentego
               112/204, 03-219                                                               The new international platform for Fuel
               Warsaw,                                                                        Retail, Handling & Distribution in Asia
               Poland

Issue 3 2016                                                                                                                               PETROLWORLD
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
4        Section 1          Feature > World View

World View
Snapshot stories from around the world

Esso Celebrates Technology Partnership with McLaren Honda F1

                                                                                       legends in a wheel-to-wheel karting race,
                                                                                       bringing grassroots racing directly to fans.

                                                                                       Jenson Button, 2009 Formula One™ World
                                                                                       Champion and current McLaren Honda
                                                                                       driver, said, “Karting has been such a
                                                                                       huge part of my life from a very young
                                                                                       age and my Formula One career would
                                                                                       not have been the same without it. Being
                                                                                       part of Esso’s Fuel Your Senses: Race
                                                                                       of Legends experience took me back to
                                                                                       those days and gives fans just a taste of
                                                                                       how exciting karting is and its place in
                                                                                       developing young talent.”

                                                                                       Bruce Crawley, Motorsport Technology
                                                                                       Manager at Esso, added that “Karting
                                                                                       represents the grassroots and lifeblood of
                                                                                       Motorsports and Esso is there at the heart
                                                                                       of your automotive experience. As such,
                                                                                       so we’re very excited to celebrate our
                                                                                       Technology Partnership with the McLaren
                                                                                       Honda team by bringing the excitement
                                                                                       of motorsports, from karting right up to
                                                                                       Grand Prix racing, directly to our fans with
                                                                                       this thrilling 360° VR experience.” Fans
                                                                                       can visit www.esso.co.uk/fuelyoursenses
EssoTM has created an innovative new      team. Building on the success of the 2015    to experience the race for themselves on
Virtual Reality (VR) race experience to   #FuelYourSenses campaign, this latest        their desktop or mobile device.
celebrate its Technology Partnership      immersive VR experience, available via
with the McLaren Honda Formula 1™         the Esso website, features five Grand Prix   PETROLWORLD 250816

PetrolWorld to reopen Rep Office in Kuala Lumpur

PetrolWorld has announced the
reopening of a PW Representative
office in Kuala Lumpur from October
2016.  PetrolWorld has been active in
Asia since 1997 and had previously
operated with local partners to
maintain a representative office from
1998 up to 2010.  This was mainly
connected with “Business Forums”
organized by PetrolWorld for Asia.  A
new PetrolWorld schedule for Asia is
expected to be announced in October
and will coincide with the opening of
the new rep office in down town Kuala
Lumpur, Malaysia.

PETROLWORLD 160816

PETROLWORLD                                                                                                           Issue 3 2016
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
Feature > World View           Section 1          5

COPEC of Chile Enters USA Market

Compania de Petroleo de Chile (COPEC)
has entered into a definitive agreement
with Delek US Holdings to which Delek
will sell MAPCO Express, Inc., and
certain related affiliated companies,
to a U.S. subsidiary of COPEC for total
cash consideration of $535 million plus
MAPCO’s cash on hand at closing. This
transaction is subject to customary
closing conditions and is expected to
close by the end of the 2017.

This transaction creates an exciting
opportunity for MAPCO and its
employees as it becomes a key
component of COPEC’s U.S. growth
strategy. Delek also gains a partner in
retail fuel sales and will continue to
supply locations through its wholesale
business and space on the Colonial           market share with 626 company and             assets are located in a geographic
Pipeline system.                             dealer operated service stations, 82          zone with interesting demographic
                                             Pronto-branded convenience stores and         attributes and with the size for a
COPEC is one of the largest companies        220 Punto-branded convenience stores.         proper competitive operation in the US
in Chile, operating in fuel and lubricants                                                 market. After buying into the control of
distribution and convenience stores.         Lorenzo Gamuri, CEO of COPEC, said            Organización Terpel in 2010, this is the
COPEC has an existing presence in the        “The acquisition of MAPCO represents          second significant step to transform
convenience stores with the largest          an important step for COPEC’s entry           Copec into a broader company in the fuel
convenience store network in Chile and       into the U.S. convenience store market,       retail and convenience store market.”
approximately 53% of Chilean gasoline        which has been identified as a key
                                             strategic growth opportunity. MAPCO’s         PETROLWORLD 290816

Maxol Ireland Rewards Company’s Top Performing Retailers

Maxol Ireland has recognised its top-
performing retailers from across Ireland
at a special awards ceremony, TLC Retail
Awards, which took place in Belfast City
Centre on Friday 19th August.

Belfast was the chosen destination to hold
the award winners’ celebratory evening,
where the group of 39 Maxol retailers,
partners and management were treated
to a luxury stay in the 4 star Malmaison
Hotel. The event also featured a private
“Dine around Deanes” restaurant tour
of each of the Deanes restaurants by
Ireland’s longest-standing Michelin star
holder for 12 years, Michael Deane.

Commenting on the night, Maxol CEO
Brian Donaldson said: “Congratulations       service. They are each a prime example        business, we look forward to the TLC
to all of our winners who have worked        of excellence in retail and it is wonderful   awards and prize distribution every year
tirelessly throughout the year to            to get to reward them in this way.  As a      and this year was no exception.”
provide our customers with the very          company who understands the importance
best standards of customer care and          of putting employees at the heart of the      PETROLWORLD 0816

Issue 3 2016                                                                                                            PETROLWORLD
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
6        Section 1          Feature > The Mexican Fuel Retail Revolution

    COVER STORY

The Mexican Fuel
Retail Revolution
PetrolWorld has been following the petroleum downstream reform in
Mexico for a number of years and this process has escalated in the last
12 months. A special report was prepared by Bob Orr and Karina Swette
from Oliver Wyman in Houston and I am delighted to publish the key
elements of the report here. It is a great introduction to the process
taking place in Mexico.
As Mexico deregulates its oil industry, it   that significant structural changes in    than in the US, and convenience store
is opening the largest fuels marketing       the downstream fuels sector will create   penetration is low, at roughly 50 percent of
and retail opportunity on the horizon.       high-value opportunities for companies    fuel stations. Oliver Wyman estimates
                                             willing to commit to the Mexican market   that by the turn of the decade, the
For the first time, foreign companies        and work through market evolution         number of fuel sites could grow by
will be allowed to own fuels assets, and     challenges.                               more than 40 percent.
companies can sell fuel branded and
sold by suppliers other than Pemex.          Mexican fuel consumption is forecast      Fuels marketers and retailers should
The downstream will open to new fuels        to grow by roughly 3 percent annually,    pay attention to Mexico. It is the sixth-
marketers and new retail fuels offerings,    a rate twice that of global demand        largest consumer of motor gasoline
changing the market landscape and the        growth and at a higher rate than the      and diesel and one of the final
value distribution among participants.       top five fuel-consuming countries.        developing markets to deregulate,
                                             Fuel site throughputs are 30 percent      allowing foreign companies to import,
While most deregulation talk focuses         higher than other mature markets,         own assets, and sell other fuel
on upstream, Oliver Wyman forecasts          fuel prices are 20 percent higher         brands.

PETROLWORLD                                                                                                           Issue 3 2016
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
Feature > The Mexican Fuel Retail Revolution                                 Section 1              7

                                                                                                                                     AdBlue®
                                                                                                                                       Light Vehicle
                                                                                                                                           Refilling

                                                                                                                                                             NEW

ATTRACTIVE FUELS MARKET DYNAMICS
AND STRUCTURE

The Mexican downstream
Attractive    fuels market  fuels market should be very
                                  dynamics              attractive
                                                   Growing         to newcomers
                                                                market     with and
                                                                                highlocal
                                                                                       level

                                                                                                                               ZVA
participants
and          alike, driven by key fundamentals. of imports
      structure
 • Strong growing consumption and increasing imports
The Mexican downstream fuels market                      Mexicans consume more than 750,000

                                                                                                                               AdBlue LV
 • High fuels site volumes
should be very attractive to newcomers                   barrels of gasoline per day, ranking the
 • Price
and        levels and structure
      localparticipants      alike,that couldbycreate
                                    driven       key substantial
                                                         country margin
                                                                    sixth in global market demand.
fundamentals.
 • Fragmented wholesale and retail markets structure     Such demand growth will likely lead
•• Strong
     Limitedgrowing
              consumer  consumption      andnew entrants
                           choice, allowing              to an   increasing
                                                             to bring           reliance on imports.
                                                                       new offers
   increasing imports                                    With   oil prices   in  the US dropping, US                        Due to the new EURO 6 standard most
                                                         refiners that have access to cheap crude                           diesel passenger cars and vans < 3,5 t
•GROWING
   High fuels siteMARKET
                      volumes WITH HIGH LEVEL OF IMPORTS
                                                         will continue to increase fuels exports,                           ( 'light vehicles' ) are designed to be
• Price levels and structure that could                  and Mexico is their closest and largest                            refilled with AdBlue® urea solution.
 Mexicans   consume more
   create substantial         than 750,000 barrels of gasoline per day, ranking the country sixth
                           margin                        import market. Imports already account
•inFragmented
    global market demand. Such demand growth will
                   wholesale and retail mar- forlikely             lead to an
                                                              48 percent     ofincreasing  reliance
                                                                                 Mexican fuel       on
                                                                                                 consump-                   Elaflex is now providing the new
 imports.  With oil
   kets structure   prices  in the US dropping,   US  refiners
                                                         tion,  that have
                                                                and Oliver access
                                                                              Wyman to cheap crude
                                                                                         forecasts  will
                                                                                                    that                    nozzle type ZVA AdBlue LV :
 continue to increase fuels exports, and Mexico is their will closest
                                                               rise  toand
                                                                        as  largestas
                                                                            much     import
                                                                                        60   market. of
                                                                                            percent                         • integrated misfilling prevention
• Limited consumer choice, allowing
 Imports already account for 48 percent of Mexicantotal    fuel consumption,
                                                                consumptionand     by Oliver
                                                                                       2020. Wyman                            for ISO 22241-5 filling points
   new entrants to bring new offers
 forecasts that will rise to as much as 60 percent of total consumption by 2020.
                                                                                                                            • flowrate up to 10 l/min
 Mexico domestic gasoline consumption and imports                                                                           • no dripping when removing nozzle
Exhibit 1: Mexico domestic gasoline consumption and imports                                                                   from fill point
THOUSANDS OF BARRELS PER DAY, 2004–2020
                                                                                                                            • easy handling similar to other
1,200                                                                                                                         ZVA nozzles
                                                             Projection
                                                                                                                            • fulfills technical requirements
                                                                                                 Total consumption            of EN 13012 and ISO 22241
                                                                                                                            • ATEX approved for use in MPD
                                    2.2% CAGR                                                                                 dispensers
  600                                                                                            Total imports              • prevents unnecessary waste of
                                                                                               60%                            single-use bottles and containers
                                                           48%
                                    9.2% CAGR
                                                                                                                            AdBlue® is a registered trademark of VDA.

    0
         2004        2006        2008        2010   2012    2014      2016         2018       2020

Sources: Pemex, EIA, and Oliver Wyman Analysis                                                                              ELAFLEX HIBY Tanktechnik GmbH & Co. KG
                                                                                                                            Tel. +49 (40) 540 00 50 · Fax +49 (40) 540 00 67
                                                                          Sources: Pemex, EIA, and Oliver Wyman Analysis
                                                                                                                            info@elafl ex.de · www.elafl ex.de/en

Issue 3 2016                                                                                                                                                     PETROLWORLD
                                                                                                                 Ad_2016_ZVAAdBlueLV_58x256mm.indd 1                    26.08.2016 12:01:14

Copyright © 2015 Oliver Wyman                                                                                                               3
Fuel retail revolution in Mexico New Brand Players in Mexico Gulf Fuel retail International update - Petrol World
station, 50 percent higher than the average for neighboring US regions, creating attractive
 site-level economics. In addition, several of these Mexican regional markets must use
8imported fuels
             Section
                 products        Feature
                      1 exclusively,        > The Mexican
                                       compounding    the tensionFuel Retail Revolution
                                                                  in supply-demand dynamics
 and driving a potential structural change.

 Average annual consumption per region of Mexico and throughput                                                        Mexican government was subsidizing
Exhibit 2: Average annual consumption per region of Mexico and throughput                                              fuel prices. However, that has reversed in
MILLIONS OF LITERS, 2013, INCLUDING GASOLINE AND DIESEL                                                                recent years. In April 2012, gasoline prices
                                                                                                                       in the US averaged $3.84 per gallon while
                                                                                                                       the equivalent gallon of Pemex Magna in
                                                                                                                       Mexico was $2.64. That’s a $1.19 differ-
                                                                                            Mexico: 5.0                ence. But with recent global crude prices
                                                                                            Germany: 4.5               dropping, the price per gallon in the US
                                                                                                                       has declined to $2.59, on average, while
                                                                                            Chile: 4.5
                                                                                            US: 3.3
                                                                                                                       the pump price in Mexico has reached
           6.0                  5.9                                                                                    $3.11. That’s 20 percent higher and creates
                                                                                                                       arbitrage opportunities in certain regions.
                                             4.4             4.2
                                                                               3.8          UK: 2.0
                                                                                            Italy: 1.6
                                                                                                                       Fragmented market with a lack
                                                                                                                       of consumer choice
       Northeast           Central        South/          Northwest          Central/
                                         southeast                            west                                            With only Pemex branded fuel and
          25%               24%              18%            17%               16%                                             stations allowed in Mexico, the
                                                                                                                              competition and investment has been
                                       Percent total volume in Mexico
                                                                                                                              much more limited than in other
Note: UK excludes supermarkets in average                                          Note: UK excludes supermarkets in average  markets. This has left the consumer
Sources: Country government reports, Oliver Wyman analysis         Sources: Country government reports, Oliver Wyman analysis offer relatively weak, as evidenced
                                                                                                                              by the low penetration and variety of
PRICING OPPORTUNITY
High fuels site volumes                                            station, 50 percent higher than the aver-                  convenience stores. Only half of Mexican
                                                                   age for neighboring US regions, creating                   stations have convenience stores
The number of retail fuels stations in                             attractive    site-level    economics.       In addi-      compared
The Mexican government sets fuel prices and has steadily increased prices
Mexico is controlled by the government
                                                                                                                                     overwith  around 80 percent in
                                                                                                                                            time.
                                                                   tion, several of these Mexican regional                    other markets.
Historically,
and    stands at just   thisover meant
                                     10,000that sites.the Mexican  marketsgovernment
                                                                               must use imported    wasfuels subsidizing fuel prices. However,
As demand has increased without a                                  products exclusively, compounding the
that has reversed in recent years. Intension
parallel growth in the number of sta-
                                                                      April in2012,      gasoline prices in the US
                                                                                 supply-demand dynamics and
                                                                                                                                 averaged
                                                                                                                              Mexico            $3.84
                                                                                                                                      is a highly fragmented fuels
per gallonMexico while
                     now hasthe     oneequivalent
                                           of the highestgallon         of Pemex          Magna        in Mexico              market.  More   than 5,000 franchisees
tions,                                                             driving   a potential     structural      change. was $2.64. That’s a $1.19
average volume throughputs per station                                                                                        operate only one or two sites, making
difference. But with recent global crude prices dropping, the price perorganic
in the region and globally, at 5 million
                                                                                                                               gallonimprovement
                                                                                                                                        in the US has in offerings
declined
liters             to $2.59,
         per station.      Moreover,  on average,                  Pricing      opportunity
                                             the aver- while the pump price in Mexico has reached $3.11. That’s fewer non-fuelchallenging.  There  are
age throughputs within larger Mexican                                                                                         services than in similar markets, and
20 percent            higher         andMexicocreates arbitrage    The Mexican       government sets
                                                                             opportunities                   fuel prices
                                                                                                      in certain       regions.
                                                                                                                              many facilities lack the cleanliness and
regional      markets,      including                              and has steadily increased prices over
City, are more than 6 million liters per                                                                                      security desired by customers. Even the
                                                                   time. Historically, this meant that the
Copyright © 2015 Oliver Wyman                                                                                                               4
 Comparison
Exhibit     of gasoline prices
        3: Comparison     of gasoline prices
INDEXED, 2005–2015 (2005 = 100)

300
                                                                                                         53 cents-per-gallon
                                                                                                         price premium
250

200                                                                                                                                     Pemex Magna
                                                                                                                                        gasoline

150                                                                                                                                     US regular
                                                                                                                                        conventional
                                                                                                                                        retail gasoline
100                                                                                                                                     price

                                                                                        119 cents-per-gallon
                                                                                        price savings                                   Cushing, OK WTI
 50                                                                                                                                     spot price FOB
     Jan              Jul              Jan            Jul              Jan               Jul               Jan             Jul
    2005             2006             2008           2009             2011              2012              2014            2015

Sources: Pemex Magna unleaded (regular), Energy Information Administration; Oliver Wyman analysis
                                                                                 Sources: Pemex Magna unleaded (regular), Energy Information Administration; Oliver Wyman analysis

PETROLWORLD                                                                                                                                                     Issue 3 2016
Issue 3 2016
investment has been much more limited than in other markets. This has left the consumer
offer relatively weak, as evidenced by the low penetration and variety of convenience stores.
10
Only half ofSection             Feature
             Mexican1stations have         > The
                                    convenience     Mexican
                                                 stores       Fuel Retail Revolution
                                                        compared  with around 80 percent in
other markets.

 Convenience    store penetration   in gas   stations                                                                      fuels market represents a once-in-a-
Exhibit 4: Convenience store penetration in gas stations
                                                                                                                           generation opportunity for bold strategies
NUMBER OF STATIONS WITH CONVENIENCE STORES                                                                                 to shape the market and for companies
                                                                                                                           with strong fuels capabilities, offers, and
                                                      5%                                                                   the desire to grow value.
                                    18%                                20%

                   45%
                                                                                        35%                                Strategic considerations
                                                                                                                           for mexican fuels market
                                                                                                                           participation
                                                      95%
                                    82%                                80%                           Without
                                                                                                                           When considering whether to participate
                                                                                        65%          convenience           in the deregulated Mexican downstream
                                                                                                     store6.0
                   55%                                                                                                     market, companies should ask themselves
                                                                                                                           several critical questions.
                                                                                                     With
                                                                                                     convenience
      0%                                                                                             store                 How much in refined products am
                 Mexico              US            Germany              UK             Poland                              I exporting today that already ends
                                                                                                                           up in Mexico (or other parts of Latin
Sources: CBRE – Market View European Petroleum Retail Sector, US Census Bureau; Oliver Wyman analysis
                   Sources: CBRE – Market View European Petroleum Retail Sector, US Census Bureau; Oliver Wyman analysis   America)? Will those exports be
                                                                                                                           sustained or grow?
largest franchisees operate fewer than                        how and when permits will be awarded,                        How could I take better advantage of
300 stations, making scale operations a                       if foreign companies will be allowed to                      my products that already flow from the
challenge.                                                    buy existing assets, or how the number                       Gulf of Mexico, the West Coast, or over
                                                              of retail stores will be regulated.                          the border into northern Mexico?
                                                              Further, it is not clear how regulators
But that has not restricted the                                                                                            How much would I benefit from securing
                                                              will determine fuel prices during the
development of grass-roots efforts to                                                                                      future product placement and capturing
                                                              transition period or how prices will
meet consumer demand. The largest                                                                                          more value in the fuels chain?
                                                              change. It is essential for participants
franchisees have developed their own
                                                              and investors to stay closely connected                      In what part of the value chain can
offers including loyalty programs, fleet
                                                              to changes and build flexible strategies.                    my offer, capabilities, and assets
cards, and fresh food offerings, proof
that the Mexican consumer is looking for                                                                                   differentiate themselves and create
expanded choices.                                             Participation options                                        value, given the level of Mexico market
                                                                                                                           development?

Opportunities open with regulatory                            Companies can pursue a range of                              Should I invest in new assets or create
changes                                                       options to participate in the downstream                     partnerships to secure supply and
                                                              fuels market in Mexico, from full                            placement?
                                                              ownership and operation of assets                            What are my current relationships? How
Deregulation laws were passed in 2013
                                                              within key segments of the value chain,                      should I work with local partners? Pemex?
and 2014, and Mexican regulators are
                                                              to partnerships and joint ventures, to                       Government agencies? Franchisees?
implementing plans to relax control of the
                                                              strong, brand-based sales agreements.                        Other oil and gas
                                                                                                                                          6 companies?
market     in the next few years, impacting all
Copyright © 2015 Oliver Wyman

areas of the energy value chain.                                                                                           What parts of my retail offering will fulfill
                                                              Market dynamics will continue to evolve,                     the needs of Mexican consumers, and how
                                                              with consolidation of current players                        should I adapt?
For downstream activities, the law
                                                              and new sites and concepts from
establishes a permit regime regulated                                                                                      How do I prepare for the theft that
                                                              market entrants. Existing local fuels
by the Ministry of Energy (SENER) for                                                                                      continue to increase in several parts of the
                                                              and convenience retailers will continue
petroleum treatment and refining and                                                                                       value chain?
                                                              to grow and consolidate, with larger
the import and export of petroleum
                                                              companies speeding up the pace of                            How much am I willing to invest? What is
products. The Energy Regulatory
                                                              buying smaller operators. Entrants and                       my risk tolerance? What am I leaving on
Commission (CRE) provides permits
                                                              local participants will build new fuels                      the table if I don’t participate?
for crude oil, petroleum products, and
                                                              sites and probably test hypermarket and
petrochemicals, transportation, storage,                                                                                   How do I build flexibility into my strategy
                                                              grocery fueling offers.
distribution, compression, liquefaction,                                                                                   as regulations evolve?
decompression, regasification,
marketing and retail sale of crude oil,                       A range of foreign refiners, fuels
petroleum products and petrochemicals,                        distributors, marketers, and retailers                         PetrolWorld would like to thank
along with integrated pipeline                                will build and buy stores, and form                            Oliver Wyman for their permission
transportation and storage systems.                           partnerships, bringing new consumer                            to reproduce the key elements of
                                                              offerings in fuel and convenience.                             their report here and of course
Investing in the Mexican fuels market                                                                                        the Authors Bob Orr, Partner and
comes with risk. Several details about                        Given the regulatory changes and                               Karina Swette, Principal.
the regulations are not clear, such as                        attractive market dynamics, the Mexican

PETROLWORLD                                                                                                                                                Issue 3 2016
PW   Section 1   011

                            PetrolWorld Conference y
                            Foro de Negocios para
                            Latinoamerica 2017
                            Panamá del 19 al 20 de Septiembre 2017

El Mercado de venta directa de
combustible en Latinoamérica está
evolucionando hacia una posición
clave internacionalmente. Esto se
puede ver claramente en América
Central, donde se ha producido un
cambio y un desarrollo dramático
de marcas de combustible así como
en la cadena de suministro de
combustible. PetrolWorld aspira
a crear un Puente de las Américas
al llevar a cabo su primer evento
para Latinoamérica cerca del así
llamado Puente de las Américas,
en la Ciudad de Panamá.

Si está interesado en este evento,
puede registrarse en
www.petrolworldamerica.com

    www.petrolworldamerica.com
12       Section 1          Feature > New Fuel Retail Brands in Mexico

  COVER STORY

New Fuel Retail
Brands in Mexico

PetrolWorld Global Daily News Service        New Players Local & International             Mexico. Sergio de la Vega, Gulf’s director
has been following the process of                                                          for Mexico speaking to PetrolWorld,
change in the fuel retail and distribution   There are a number of key local players.      stated that it is looking to operate at
market of Mexico. There has been             These include Cantelli in South Mexico,       least 100 sites over the next year. The
92 news items since January 2015             Corpo Gas, Eco Gasolineras, Gasmart           company aspires to reach 2,000 sites by
published.                                   convenience retail, Hidrosina in Mexico       2020. De la Vega said Gulf has a target of
                                             City, Oxxo Fuel & Convenience retail,         25 percent of the national market, which
In February of this year, the Mexican        Petro 7 and the first international fuel      currently comprises more than 10,715+
Government brought forward the               brand “Gulf”.                                 fuel service stations across Mexico. The
2017 import of fuels to April 2016.                                                        company intends “to give Mexicans a
As a result of this move, a key feature                                                    choice,” de la Vega said.
has been the element of new players          Gulf Oil Mexico – First International Brand
both local and international. Many of                                                      Until now all fuel service stations in the
these new players have been using            Gulf Oil is currently opening its first       country have been franchises of state-
PetrolWorld Twitter!                         branded fuel retail service stations in       owned oil company Petroleos Mexicanos,

PETROLWORLD                                                                                                               Issue 3 2016
Feature >New Fuel Retail Brands in Mexico                Section 1         13

better known as Pemex. Mexican fuel
service stations sell fuel at a fixed price,
and Gulf will be subject to the same
system. However, officials have said that
in the future they will allow prices at the
pump to vary according to market forces
as part of the reform process within fuel
retail.

PetrolWorld will have photographs and
an update on the first Gulf Branded fuel
service station in Mexico in our next Issue 4
“Outlook for 2017”.

The Mexican government is looking to
accelerate the opening of the fuel retail
market in an attempt to encourage
investment.

Mexican Association of Fuel Retailers

According to the Mexican Association of
Fuel Retailers AC (Asociación Mexicana
de Empresarios Gasolineros A.C.),
there are 10,715 fuel service stations in
Mexico. Currently they all work as Pemex
franchises and display the same green
image, but also promote the brand owner
of the franchise group.

In December 2015, an alliance was
announced through a statement,
consisting of eight fuel groups that
altogether own 10 per cent of the
network sites in the country with a total
of 1,265 stations. These are Hidrosina,
Corpogas, Lodemo, Esges, Enerkom,
Octan Fuel, Gasored and Cargo. These
companies announced they will work
together with Pemex and will begin to
offer additional ancillary services. It is
understood by PetrolWorld that the new
partnership emerged to compete with the
G500 group that brought together more
than 763 dealer fuel service stations.

Antonio Caballero, President of G500,
said the company’s objective is to grow
the current network of 763 fuel service
stations to 1,000 sites during 2016. He
also stated that they intend to develop
bulk fuel storage and distribution of fuel
products. It is understood by PetrolWorld
that there are a further 200 sites waiting
for approval.

PetrolWorld is following the Mexican
fuel retail and distribution market               Gulf Oil Deal with Aguri Formula E Team
closely. PetrolWorld will hold the first
international Fuel Retail Conference              Gulf Oil International has struck a deal with the Aguri Formula E team to bring
and Business Meeting Forum for Latin              one of the most iconic racing liveries to the all-electric racing series. Gulf will
America in Panama next September.                 be the team’s title sponsor for the rest of this season. Both team drivers,Antonio
                                                  Felix da Costa and Salvador Duran will run the new-look cars.
            Website: www.petrolworldamerica.com

Issue 3 2016                                                                                                               PETROLWORLD
14       Section 1           Feature > Gulf Fuel Retail Update

  COVER STORY

Gulf Fuel Retail
Update – International
Developments
Gulf’s fuel retail has continued to grow       the Philippines several sites for new        present in 19 countries and plans to
throughout 2016 with new fuel retail           stations have been identified.               open networks in 6 new countries are
licensees being appointed in Mexico with                                                    imminent. Gulf wishes to find new fuel
Philippines and South Africa, the latter       The 1st Gulf station inauguration is         retail partners around the world and
two appointments also milestones for Gulf      planned for the 11th and 12th October 2016   invites enquiries for the brand use on
as the 1st networks in Africa and S.E. Asia.   and will also have a shop, Gulf Express*     service stations.
                                               and service centre.
In South Africa the first station plans                                                     Another important development is that
are being drawn up and update news             *Gulf Express is a new quick lube            Gulf has recently signed a Trade Mark
will be published on PetrolWorld. In           service concept currently being rolled       agreement with Zenrin USA, Inc. which
                                               out in several countries to provide          develops original satellite navigation
                                               vehicle owners with fast oil change,         products for the automotive and
                                               basic servicing and valeting while u wait    smartphone navigation app markets.
                                               in the Customer reception with access        This will mean that from the end of
                                               to refreshments, Wi-Fi etc.                  2016 the Gulf logo will start showing on
                                                                                            the dashboard Sat Nav’s of many major
                                               Gulf has ambitious plans to grow the         motor vehicle brands the location of
                                               network in 60 countries by 2020. Gulf        Gulf service stations in countries where
                                               fuel retail networks are actually now        Gulf stations are present.

PETROLWORLD                                                                                                             Issue 3 2016
Feature >Gulf Fuel Retail Update          Section 1          15

                                                                             The sponsorships enable Gulf fuel retail
                                                                             network operators to leverage sales
                                                                             the activations which include taking
                                                                             customers/owners to major sporting
                                                                             events and VIP packages , incentivising
                                                                             staff and running competitions for
                                                                             general public to also win tickets or
                                                                             merchandise linked to the sponsorships

                                                                             Gulf fuel retailers also have access to
    Gulf Oil International has                                               selling a wide range Gulf lubricants via
    signed major sponsorship                                                 forecourts or workshops either with
                                                                             standard packs or special packs linked
    deals with Manchester United
                                                                             to the sponsorships.
    Football Club

                                          World Endurance Champion-
                                          ship Gulf Racing entering a
                                          Porsche 911 RSR GTE

                                                                               Please send your enquiries re
                                                                               Gulf Fuel Retail, Gulf Express,
    A new long-term technical                                                  lubricants to Paul Stannard,
    partnership with the                                                       Business Development Manager
                                                                               Gulf Oil International UK Ltd
    Milwaukee BMW World                                                        ps@gulfoilltd.com
    Superbike Team
                                                                               www.gulfoilltd.com

 PetroPoint - the automatic vehicle recognition system.
 Trouble-free fuelling operations guaranteed.

                                                                   Automate your fuelling processes with the help of
                                                                 PetroPoint automatic vehicle recognition and profit by
                                                                providing superior customer service, security and a high
                                                                              throughput rate of vehicles.

                                                                 PetroPoint can be easily fitted to almost every vehicle.
                                                                  Whether bus companies, public transport operations,
                                                                     shipping companies or vehicle fleet operators
                                                                             from all branches of industry
                                                                         – all of them profit from PetroPoint!

       Hectronic GmbH
       Allmendstrasse 15
       79848 Bonndorf, Germany
       Phone: +49 (0) 77 03 - 93 88 0
       Fax: +49 (0) 77 03 - 93 88 60
       mail@hectronic.com
       www.hectronic.com
                                                                               A Must-have!
    Issue 3 2016                                                                                          PETROLWORLD

PetrolWorld Q3_Hectronic artwork.indd 1                                                                     29.07.2016 09:44:37
16      Section 2         Oil Company Retail Brand News > Latin America: News & Updates

LATIN AMERICA                                                                          NEW PW LATINOAMERICO
                                                                                       NOTICIAS AVAILABLE NOW
News Index:
                                                                                       Further information details of
Argentina
Ricardo Darre Appointed as New YPF
                                                                                       the business forum event are
CEO                                                                                    now available on the dedicated
Petrobras Argentina Terminates Chile                                                   forum website:
Natural Gas Supply Agreement                                                           www.petrolworldamerica.com
Conosur To Be Acquired by GMM Group
PDVSA vende Conosur SA
Pampa Energy Buys Petrobras Shares
Biodiesel Portal Celebrates 10 years
Bahamas
Call to Bypass Fuel and Buy Natural Gas
from America
Bermuda
Rubis Hosting Free Fuel For Life
Promotion
Rubis Host Warwick 5k Family Fun Run
RUBiS Promotion Winner Announced
                                           Jamaica                                    Trinidad & Tobago
Brazil
                                           Jamaica Refinery Upgrade Remains in        Independent Fuel Retail Dealers
Petrobras new CEO and Executive
                                           Limbo                                      Highlight Problems
Officers
Pedro Parente takes office as Petrobras    Mexico                                     Virgin Islands
CEO                                        Fuel Retail Deregulation & International   A Year Of Free Petrol From SOL
Cosan Expands Zip Lube Network             Investors - Update
Ipiranga Acquires ALE                                                                 Other
                                           La Gas New Independent Fuel Brand
Ipiranga adquiere ALE                                                                 Nota del Editor para Latinoamérica
                                           Pemex New Fuel Distribution Brand
Petrobras LNG Auction Process                                                         Editors Note for Latin America
                                           Scheme
Copesucar & Eco Energy Joint Biofuel                                                  Petrobras Appoints New Strategy Chief
                                           Perc introduce franquicia de venta de
Investment                                 combustibles
Eletrobras’ Debt Continues With            Perc Launches Fuel Retail Franchise
Petrobras                                  Hidrosina To Promote Mobile Payments
Petrobas Privatized Confined to            Pemex Sells Non Strategic Fuel Sites
Downstream?                                Oxxo Stores Temporary Close in Oaxaca
Sale of BR Distribuidora to be Restarted   BP Considers Mexico Fuel Retail Market
More Details on Sale of Petrobras          Oxxo Enter Private Fuel Market
Distribuidora BR                           Various New Pemex Appointments
Más detalles sobre la venta de Petrobras   Pemex Increase Workers Pay
Distribuidora BR                           Alternative Fuels Are Minimal
Petrobas Resets Terms for Br               Femsa Publishes Strong Q2 Results
Distribuidora Sale - UPDATE                Another New Downstream Partnership
Ultrapar To Start Lubricants Business      Formed
Profit Fall For Petrobras                  Mexico To Improve Fuel Quality
                                           Standards
Chile
                                           PROFECO Highlights Need for Stronger
Chile introduce Ley sobre etiquetación
                                           W&M Regulation
Sale of Petrobras Chile Agreement
                                           CRE Fuel Reform Standards
Signed
                                           Costco to Enter Fuel Retail Market
Acuerdo de Venta de Petrobras Chile
Big John Acquisition In Final Stage        Nicaragua
COPEC to Acquire MAPCO Express in          Puma Energy Informa Al Incidente
USA                                        Puerto Sandino
                                           Puma Energy Update on Puerto Sandino
Colombia
Biomax Fuel Retail & Distribution          Paraguay
Biomax Biocombustibles y Estacio de        Petromax abrirá 30 nuevas estaciones
Servicio                                   de servicio en 2016
Ecopetrol Reveals Minority                 Petromax To Open 30 New Fuel Service
Shareholders’ Agreement                    Stations in 2016
Ecopetrol Suffers Q2 Fall                  Petrobras First Solar Energy Fuel Retail
                                           Service Station
Dominican Republic
                                           Petropar Fuel Retail Promotion
Plans To Eliminate Fuel Subsidies

PETROLWORLD                                                                                                      Issue 3 2016
Oil Company Retail Brand News > Latin America: News & Updates                                    Section 2          17

Argentina: Puma Energy 1st Fuel Retail site In Rosario

First Puma fuel service station in Rosario will open in
November.

Puma Energy is investing three million dollars on its first
fuel service station in Rosario. Company claims it is their
most ambitious project in the country and will commence
operations from November.

All fuels under the brand will be sold. The site is located on
land in Av. Circunvalación and President Peron, one of the
busiest entrances of the city. Distinct from the usual stores
and service stations overhanging the commercial offer and
the design version, this site will host a “7th Street Café”, an
adapted version of an Australian business model. In addition,
it will have service areas and inside food services will include
the Subway franchise.
                                                                       to have 2,700 outlets in 49 countries. Rosario is a key city in
Established in the country in 1920, the Puma brand then                the Province of Santa Fe, Argentina. It is 330klms north west
merged with two other companies, marked its presence under             of Buenos Aires.
the name of EG3. In 1997, the brand name and oil company
was acquired by the Trafigura Group and has since expanded             PETROLWORLD 01082016

Brazil: Petrobras is rewriting the terms       Administrativo de Defesa Economica.’           stations, 8 distribution terminals,
and conditions for the sale of its fuel        One of the major recommendation is             aviation fuel operations at 11 airports,
distribution unit.                             to find a partner that would share the         stakes in 2 logistics companies, and 1
                                               control of BR Distribuidora through            lubricant plant.
Petrobas expects to complete the sale of       split ownership. Petrobras would now
its fuel distribution and marketing unit       be trying to hold only 49% of the voting       The Southern Cross Group is a private
know as the Petrobras Distribuidora S.A.       capital of the distribution unit.              equity firm founded in 1998, with US$2.9
(BR Distribuidora) by early 2017. The                                                         billion of assets under management,
planned divestment is part of Petrobras’       PETROLWORLD 04082016                           which focuses on investments in Latin
plan to sell USD 15 billion of assets by the                                                  America, in companies in the industrial,
end of this year, to reduce its debt burden,   Sale of Petrobras Chile Agreement Signed       service, logistics and consumer goods
which is estimated to be USD 130 billion,                                                     sectors.
in the first quarter of 2016. The company      Petrobras has announced that it has
had to reject three offers as they were        signed a sale and purchase agreement           As reported by PetrolWorld, this
nowhere near the company’s expectations.       with the Southern Cross Group for 100%         transaction, carried out through
                                               of Petrobras Chile Distribuición Ltd. (PCD),   a competitive bid process, is an
Petrobas is planning to sell only a            held through Petrobras Caribe Ltda.            important part of Petrobras’ 2015-2016
minority stakes in its distribution unit.                                                     Disposal Plan.
As the buyers showed lesser interest           The estimated cash inflow from the
in buying minority stakes, the company         deal is US$464 million, divided as             PETROLWORLD 220716
had to revise the terms and conditions         follows: US$88 million arising from the
for the sale. It would be changing from        distribution of surplus cash before the        Dominican Republic: Plans To Eliminate
the current competitive bidding process.       transaction closed; US$367 million to          Fuel Subsidies
The state owned BR Distribuidora has           be paid by Southern Cross on the day of
                                               closing; and a price adjustment payment        Society Enterprises of Fuel and Derivatives
a major hand in Brazilian fuel retail
                                               of US$9 million, to be made within 65          (SEC) proposed the elimination of oil
market with over 7500 fuel service
                                               working days after closing.                    subsidies, due to market distortions
stations across the nation.
                                                                                              that have been causing irregular fuel
Now the company expects to receive             The deal’s completion is expected to           marketing, tax-exempt distribution and
bidding offers by November or                  take three to four months, subject to          detriment of standards for consumers.
December, 2016 and hope to confirm the         compliance with certain prior conditions,      The SEC endorses the recent statements
sale in the first quarter of next year. The    as established in the agreement and            by the Minister of Industry and Trade,
sale would become effective only after         customary for this kind of operation.          José del Castillo, who said that market
receiving the approval of the concerned        PCD is Petrobras’ fuel distribution            conditions have changed and these
government body, ‘Cade for Conselho            company in Chile. It has 279 fuel service      changes represent an opportunity

Issue 3 2016                                                                                                               PETROLWORLD
18       Section 2           Oil Company Retail Brand News > Latin America: News & Updates

to remove subsidies at a time of low           Venezuelan leader’s one-day visit to         Costco Fuel Retail through its legal
internaitonal oil pricing.                     Kingston.                                    representative, Patricia Quiles Arteaga, set
                                                                                            out their plans for the design, construction,
Some union leaders says distribution           PETROLWORLD 010716 - Observer                operation and maintenance of fuel retail
companies and groups like Anadegas                                                          service stations retail.”We continue to
benefit from the subsidy but not the           BP Considers Entry to Mexican                expand our fuel retail operations on an
people or state. The chairman of the           Fuels Market                                 international level ,” says the company’s
SEC, Demetrio Almonte said that the                                                         financial report presented in 2015 to its
fiscal impact of this practice (about four     BP has decided to join a number of
                                                                                            investors.
million gallons per month) is estimated        international players who are looking at
a loss more than RD $ 2.000 billion every      entering the Mexican fuel market. BP         The financial analysis explains that
year to the Dominican state.                   is yet to confirm any plans of when and      in almost all its new stores in the US
                                               where it might enter the Mexican fuels       and Canada the opening of fuel retail
PETROLWORLD 12082016                           market. “BP is analysing all investment      sites are part of a key development
                                               opportunities in connection with the         and strategy plan. In late 2015, the US
Jamaica Refinery Upgrade Remains               energy reform,” said a BP spokesman.         Company had 490 fuel service stations
in Limbo                                       Current fuel statistics of Mexico shows      operating in USA, Canada and Australia.
                                               that it is a net importer of fuel. In May    In Mexico, the company has 37 stores.
Recent visit by President Maduro of            this year, there was 11.1% decrease in       Costco is looking to install 27 fuel
Venezuela highlights key dilemma on            domestic fuel production and import          dispensers in the three locations of
Petrojam refinery.                             was up by 24.1% when compared to the         Culiacan, San Luis Potosi and Merida.
                                               same period in the previous year.
 Prime Minister Andrew Holness says
                                                                                            PETROLWORLD 26082016
Jamaica needs to know within three             BP also has its eyes in Mexico’s deepwater
months whether Venezuela is prepared           auction which is scheduled to be held        FEMSA inaugurates its first fuel service
to go ahead with upgrading the Petrojam        in December, 2016, with another 25           station under the “Oxxo” brand.
oil refinery on Marcus Garvey Drive in         prequalified companies.
Kingston.                                                                                   FEMSA who owns the Oxxo retail
                                               PETROLWORLD 07072016                         network has opened its first fuel service
“If we get our refinery upgraded, then
                                                                                            station under the brand ‘Oxxo Gas’, to
that will answer the energy questions:         Mexico: Costco to Enter Fuel                 compete mainly with PEMEX, the state
It will answer our economic growth             Retail Market                                owned giant. ‘Oxxo Gas’, a subsidiary
questions, the competitiveness question.
                                                                                            of FEMSA has joined the competition
The refinery is critical. It is one of those   Costco plan to build and operate
                                                                                            in Mexican private fuel retail market
critical columns, we believe,” Holness         3 pilot fuel retail service stations
                                                                                            by opening up its first fuel service
told local media during a one-on-one           in Mexico. Costco Fuel Retail have
                                                                                            station this week at San Pedro Garza
interview at the Office of the Prime           submitted applications to the Ministry
                                                                                            Garcia in northern Mexico. This site was
Minister.                                      of Environment and Natural Resources
                                                                                            previously owned by Pemex, the state
                                               (Semarnat) as they plan to build and
He admitted that the issue was the                                                          owned giant who enjoyed monopoly in
                                               operate 3 fuel service stations “urban
main focus of discussions he had                                                            the sector for almost 8 decades.
                                               type for fueling with exclusive service to
with President N. Maduro during the            Costco members.”                             Femsa/Oxxo has plans to rebrand
                                                                                            another 49 Pemex stations this year,
                                                                                            mostly around Monterrey, said Rolando
                                                                                            Vazquez, Oxxo’s director in his latest
                                                                                            interview. ‘Oxxo Gas’ would continue to
                                                                                            sell Pemex fuel, even if the stations are
                                                                                            to be renamed to its brand, for a while.
                                                                                            Later, the company may start to import
                                                                                            fuel to some regions, depending on the
                                                                                            liberalization that is yet to happen.

                                                                                            Mr. Vazquez said “Pemex does not
                                                                                            participate much in providing services
                                                                                            at gas stations, it just provides the
                                                                                            fuel, so this is a major change because
                                                                                            now different fuel retail operators will
                                                                                            have their own brands and compete for
                                                                                            customers” and “We expect to be very
                                                                                            competitive because we already have a
                                                                                            strong presence in the country, and we
                                                                                            are in a strong growth phase right now.”

                                                                                            Though the Oxxo branded fuel service
                                                                                            station opened is its first own brand
                                                                                            station, Oxxo already operates a fuel

PETROLWORLD                                                                                                                 Issue 3 2016
20       Section 2           Oil Company Retail Brand News > Latin America: News & Updates

retail network of 335 fuel service             stations. PetrolWorld notes that there        removal of all subsidies on fuels and
stations under the Pemex brand. They           was no information on fuel retail             deregulation of fuel retail.
have plans to gradually rebrand all these      sites dispensing ‘over the delivery
335 sites into ‘Oxxo Gas’ stations. They       amount’. Fuel dispensers require              “However there has been no consultation
also eye to expand into Mexico City and        regular inspection and checks preferably      regarding budgetary proposals,” he said.
other important parts in the country.          from independent service maintenance          “We have written to the government
                                               companies. It would be key to learn           on several occasions and they have not
It was recent fuel reforms that let private    how many fuel service stations above          consulted with us, they have always said
independent fuel dealers including Oxxo        had a “fuel dispenser maintenance             they are looking into it, I think they are
to operate in Mexican fuel market under        contract”?                                    aware of our problem but nothing has
own brands. They are awaiting further                                                        been done, the Minister has not met
policy changes which would remove              PETROLWORLD 19082016                          with us,” he said, and pointed out that
price caps within the next 18 months                                    www.profeco.gob.mx   Energy Minister, Nicole Olivierre, had not
to expand their business by importing                                                        met with them since assuming office in
fuel by themselves. FEMSA, the parent                                                        September 2015.
company of Oxxo is one among the               Paraguay: Petrobras First Solar Energy
leading retail and bottling firm in Mexico     Fuel Retail Service Station                   He also noted that amendments to the
has had a fall in its first quarter profits,                                                 Petroleum Act were also being sought
                                               Petrobras Paraguay has announced the          to place the marketing license in the
to some extent, due to its expansion in
                                               opening and operation of its first solar      name of the land owner and not the
the fuel retail sector as well.
                                               energy fuel service station in Paraguay.      operator and pointed out that this would
PETROLWORLD 08072016                           Celebrating ten years of operation in the     also enable NP to get profits on both the
                                               country, Petrobra Paraguay announced          wholesale and retail sides of the industry
Mexico: PROFECO Highlights Need for            it snew partner: The Sun! With an             as a significant number of dealers were
Stronger W&M Regulation                        investment of approximately $ 100,000         leases and did not own the property on
                                               , the fuel servcie station located at         which the station was situated.
Mexico’s consumer protection body              Shopping del Sol Asuncion was chosen
PROFECO sees big increase of                   for the implementation of this innovative     PETROLWORLD 300716
complaints concerning refueling at             solar energy project. It marks a special
service stations.                              milestone for Petrobras Paraguay.
                                                                                             Virgin Islands: A Year Of Free Petrol
A Mexican senate commission has                PETROLWORLD 180816                            From SOL
called on consumer protection agency
Profeco to issue a report on the number        Trinidad & Tobago: Independent Fuel           Sol Petroleum announces a promotional
of complaints it has received from             Retail Dealers Highlight Problems             contest that one lucky customer will get
consumers of fuel service stations. The                                                      the chance to win free fuel for a year. On
request came amid an increase of cases         Low fuel margins and taxes are a real         account of a promotional contest that
where fuel service stations have been          threat to profitability at fuel retail        will run until October 9th 2016 with the
caught selling fuel short liters, a crime      dealer sites.                                 Grand Prize Draw on October 13th 2016
that carries a prison sentence in Mexico.                                                    a Lucky customer who wins the lucky
                                               The local Petroleum Dealer Association        draw gets a Full year of free fuel from
In 2014, nearly four out of 10 fuel service    Petroleum Dealers Association of Trinidad     the sol petroleum.
stations were found to be selling less         & Tobago (PDA) president Robindranath
fuel than the amount stated on the fuel        Naraynsingh, offered that sobering view of    For every US$20 spent in Sol Go Further
dispenser. Furthermore, among 2,359            the industry during a special meeting held    gasoline or diesel at any Sol Service
sites inspected by PROFECO in 2013,            in Chaguanas last week.                       Station, consumer receive a Web Card
36% were found to be selling short                                                           to enter the promotion.Visit the website
measures.                                      Speaking to reporters, he said dealers        www.solpetroleum.com/gofurtherbvi fill
                                               had “not received a margin increase           in your details and enter the code found
The senate also called on the attorney         since 2005 while subsequent to 2005,          on the Web Card for your chance to win
general’s office to report on the number       there have been increases in minimum          up to US$4,000 worth of fuel for the year.
of investigations opened during 2016           wage and in electricity and WASA rates.”
regarding fuel theft, another widespread       “And then to compound, this, there is         Liz Wyatt, General Manager of Sol
criminal activity. The attorney general’s      a business levy tax, and a Green Fund         BVI remarked that Sol prides itself on
office this week pledged to step up the        Levy tax which raised everything 200          providing customers with the highest
fight against fuel theft from pipelines        percent, so every dollar we collect, nine     quality products and services and are
and tankers. State oil company Pemex           percent goes to the government on a           delighted to offer our customers this
has recorded some 70 fuel spillages            17 cents profit for super and premium         opportunity to win such an amazing
from pipelines caused by ‘milking’ year-       and 12 cents profit per litre on diesel,”     prize. She also took the opportunity
to-date. Profeco has published online          Naraynsingh said.                             to thank their loyal customers voicing
the locations of fuel service stations it                                                    their appreciation for the promotion.
has found to be selling short liters. From     With the 2017 budget just over two            And also gives promise on continuing
January to May, the agency carried out         months away, he noted that there were         with delivering on quality products and
44 visits to fuel retail sites in Mexico       conditions attached to government’s           services under Sol brand.
City, which resulted in the shutting           plan to borrow one billion US dollars
down of 75 fuel dispensers at 34 service       claiming conditions included the              PETROLWORLD 09082016.

PETROLWORLD                                                                                                                Issue 3 2016
Oil Company Retail Brand News > Africa: News & Updates                                Section 2   21

AFRICA
News Index
Botswana                                 Nigeria                                   Zimbabwe
Puma Energy Opens New Fuel Retail        EATECH Launch New Product to Test         EcoCash & Total Partnership
Site                                     Fuel Quality in Network                   Fuel Retail to Private Dealers
Ghana                                    Petrocam Opens Another Site with Solar    Zuva Petroleum Accepts Mobile
Calibration Standard Problems            Panels                                    Payments
Highlighted                              NNPC Targets Profitability By End of
Top Oil MD Calls for Local Mergers of    2016
Independents                             NLNG Gas Company Year Award
Ghana Seeks Russian Oil Investments      Fuel Distribution Deal Record Mark
Deregulation Postponed for Fuel Retail   300k Fuel Attendants Seek Better
Sector                                   Welfare Package
Total Introduces ‘B2C’ Fuel Card         Nipco Grabs Oil & Gas Awards
Fuel Service Station Safety Training     IPMAN Monitors Fuel Deregulation
GNPC New Deputy CEO Appointments         Policy Success
                                         Government Restores IPMAN’s Rights
Kenya                                    PPPRA To Introduce New Fuel Tax
Agnes Yahuma Achieve Prestigious         Fuel Subsidy Removal Has Worked
Fellowship                               Claim
                                         IPMAN & NIMEX Partnership
Liberia
                                         IPMAN Plans as Govt. Fulfill Strategies
Key State Bodies Obtain Fuel Tax
                                         Niger Delta Crisis High Risk for
Exemptions
                                         Investors
Mozambique
                                         South Africa
Sasol Award Amec Foster Wheeler
                                         Potential Fuel Product Distribution
Contract
                                         Problem Highlighted
Total Service Stations Expansion
                                         GAC Bunker Fuels and Enoc Agreement
Namibia                                  State Fuel Fund Eyes Chevron’s Assets
Renewed Shell V-Power Promotion          Landmark Biofuel Flight in South Africa
                                         Petroleum Training Institution CEO
                                         Appointed
                                         Fuel Shortage As Workers Strike
                                         IEC Worried Over Petrol Strike
                                         Fuel Strike Enters Second week
                                         Engen To Celebrate Women’s Month
                                         Strike Ends With 7% Pay Hike
                                         Engen Obtains Top Brands Award
                                         Tanzania
                                         Lake Oil School Desk Donation
                                         Tpdc Opts Natural Gas Bus-Engines
                                         Tunisia
                                         Legislative Framework in 2017
                                         Uganda
                                         Total Launches New Premium Fuel

Issue 3 2016                                                                                                 PETROLWORLD
22       Section 2           Oil Company Retail Brand News > Africa: News & Updates

DR Congo: Puma Energy Opens Fuel Storage Terminal At Matadi

Puma Energy opened its 99th bulk fuel storage terminal at Matadi      The terminal was a detailed and large scale construction project
in the Democratic Republic of Congo (DRC). This terminal is           including the creation of four, 6,500 cubic meter Clean Fuels
equipped to handle a variety of product types including Gasoline,     Storage Tanks complete with truck loading and unloading racks.
Jet Fuel and Gasoil. This hub will play a key role in shipment and    The site also includes a new administration building, a state-of-
distribution of fuel products, providing security of product supply   the-art firefighting system, floating jetty and interconnecting jetty
to DRC and its neighboring countries.                                 pipelines, further interconnecting piping with another site and
                                                                      a 2 km concrete access road. The terminal and jetty will provide
Jonathan Molapo, Puma Energy’s COO for Africa said, “The Matadi       strategic vessel reception capability for DRC and the sub region.
terminal will secure the supply of high quality reliable fuels
for DRC and the region for the next generation. It has brought        PETROLWORLD 01092016
employment to the area and we are proud to be helping develop
DRC’s infrastructure and supply requirements.”

Ghana: Fuel Service Station                    included the Goil, Petrosol, Shell, Total,     I), fom the Greater Accra Regional
Safety Training                                Dukes, Mamba Gas fuel retail brand.            fire office, Mr Addo Adams, urged
                                               Participants were trained to identify          management of fuel retail stations
Fuel retail site owners and staff              the causes of fire, its composition and        ensure that they have good drainage
in the Ga Central and Ga South                 classification, how to extinguish fire,        systems, as well as wash away
municipalities in the Greater Accra            as well as safety tips on controlling fire     fuel residue that settles on the
Region have received training on fire          involving fuel and gas.                        forecourt.“As owners of fuel stations,
safety measures on their premises.                                                            you must also ensure that there are no
The exercise was organised by the              The acting Weija Municipal Fire                leakages from the pumping systems
Weija office of the Ghana Fire Service.        Commander, Divisional Officer III (DO          as that can easily lead to fire at the
The participants from 12 fuel service          III), Mr Isaac Saah, recommended that          slightest mistake,” he cautioned.
stations were trained on ways of               the fuel service stations network take
preventing fire and how to manage              on board some basic precations when            PETROLWORLD 050816
it effectively when it occurs. The             developing the location of new sites.                                      Source DailyGraphic
participants in the training exercise          An Assistant Divisional Officer I (ADO

PETROLWORLD                                                                                                                   Issue 3 2016
You can also read