ALEXANDRIA, Va.—On this week’s episode of Convenience Matters, “2 Years Later: Mexico’s Deregulated Fuels Market”, NACS hosts Donovan Woods, director of operations, Fuels Institute and Paige Anderson, director of government relations dive into the Mexican fuels landscape with Norman Turiano, a former manager at Wawa and currently a c-store consultant and member of the Fuels Institute Board of Advisors.
In 2017, price increases, poor fuel quality and shortages were all part of the growing pains for the Mexican petroleum market following the deregulation of the energy market. This week’s podcast asks, “Two years later, has there been any improvement, and is there a place for U.S. retailers to get involved?”
Generally speaking, the landscape has improved drastically. Turiano says the infrastructure that makes up Mexican gas stations is nearly 40 years behind the United States, but the recent trend to add retail outlets to gas stations has sped up the industry 20 years. Now, 80% have price signs, and almost 70% are branded/non-traditional branded to create credibility.
The biggest need for Mexican fuel retailers right now is a pricing strategy. Turiano talks about the high margins that he’s seeing and where there’s room to analyze and plan appropriately. He adds that there is opportunity on the retail side to establish brands and advise companies.
Each week a new Convenience Matters episode is released. The podcast can be downloaded on iTunes, Google Play, YouTube and other podcast apps, and at www.conveniencematters.com. Episodes have been downloaded by listeners more than 110,000 times in 80 countries.