On, August 7th, 2017, the Ministry of Energy (Secretaría de Energía "SENER") published the draft of the Minimum Refined Products Storage Public Policy for public consultation and comments on the webpage of the Federal Regulatory Improvement Commission (Comisión Federal de Mejora Regulatoria "COFEMER"), which is summarized below:

This policy is aimed at strengthening public policies regarding energy security through the establishment of a strategic reserve inventory and will allow the development of a national report on the balance between supply and demand.

SENER, together with the Energy Regulatory Commission ("CRE"), will establish the necessary actions to implement the Minimum Inventories Policy, which aims to substantially increase the minimum refined product inventories by 2025.

The Minimum Inventories Policy has the obligation to report periodically the statistics of production, imports, exports, sales and inventories of gasoline, diesel, jet-fuel, among others. It also entails the obligation of storing within national territory a minimum inventory applicable to gasoline, diesel and jet fuel marketers or distributors that ultimately will sell said refined products to end users or service stations.

In the determination of the obligations of minimum storage of refined product, different logistic regions in which the country is subdivided will be considered, as well as the times of supply thereof.

Minimum mandatory inventories for the first phase of implementation (as of January 2020) consist of 5 sales days, calculated based on the figures for the previous year. From January 2022, the magnitude of the obligation will gradually increase until reaching a maximum of 15 days by 2015.

The minimum inventories proposed in the policy may be used with prior authorization of the Energy Sector Coordination Council.

Likewise, the policy foresees the use of financial rights on inventories, known as tickets.

These are intended to provide operational flexibility to permit holders subject to the minimum storage obligation, as well as to guarantee the liquidity of the refined product market for the fulfillment of said obligation.