The Mexican gas tariff

06/14/1999
Mexico's decision last month to eliminate a 4% tariff on imported natural gas is best seen as a welcome early step on a long road. The move might untether pipeline projects needed to ensure supply in the industrial states along the border with the U.S. But it doesn't herald the sort of sweeping privatization that Mexico's energy industries need. The tariff's end on July 1 will nevertheless advance an effort by the administration of President Ernesto Zedillo to open gas transportation to private investment. At the end of 1995, the administration said it would welcome private capital for gas pipelines-previously reserved to Pemex, the state oil company-and loca...
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