Mexico: Femsa Announces OXXO Fuel Retail Network Expansion Plans

Mexico: Femsa Announces OXXO Fuel Retail Network Expansion Plans

By 2020-21, the company plans to increase the number of OXXO fuel stations that carry the brand to 1,000

 OXXO fuel retail network, plans to consolidate its strong presence in Mexico's newly privatized fuel retail market, with the liberalization of Mexico's fuel market. "Our aim is to increase the number of OXXO fuel service stations that carry our brand to 1,000 by 2020-2021," says Rolando Vazquez, OXXO Gas director.

OXXO, an affiliate of OXXO, Mexico's largest convenience stores chain, currently operates 2,500 fuel service stations; however, all but 336 are branded as Pemex, the acronym for the state-owned Petroleos Mexicanos.

90% of OXXO's convenience stores have fuel service stations that OXXO fuel operates although the vast majority still carry the Pemex brand name even though customers can tell they are operated and managed by OXXO. In fact, Pemex does not participate much in providing services at fuel stations, its role is to supply the fuel.

"For the time being Pemex provides us with all the fuel but Pemex only produces 50%, the rest is imported from the U.S.," Vazquez said. This could also change. The new energy reform allows private companies, such as OXXO, to have other providers other than Pemex.

"In the future the idea is that other companies such as ourselves and other large retailers can also import directly from the U.S. Importing our own fuel is an option that we are assessing," said Vazquez.

Other fuel service station operators that have their own brands, aside from OXXO, are Mexican companies PetroSeven, La Gas, and British Petroleum, which own three fuel service stations with the brand BP.

“When we reached our goal of 1,000 fuel service stations, we will have 10% of the market. Mexico currently has 11,800 fuel stations. Eventually OXXO Gas plans to rebrand all 2,500 with its own name. Rebranding all 2,500 stations we operate at OXXO stores is clearly a major job that we are carrying out gradually," Vazquez said. Source: Forbes PWKD12072017

Last modified onTuesday, 11 July 2017 23:36
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