Mexico’s private distributors of liquified petroleum gas (LPG) on Monday urged authorities to modify their approach to pricing and regulation in the sector amid rising global propane prices ahead of winter.

Trade group Asociación Mexicana de Distribuidores de Gas Licuado de Petróleo y Empresas Conexas (Amexgas) said that LPG price caps imposed this summer by Mexico’s Comisión Reguladora de Energía (CRE) “have generated economic uncertainty, unemployment and the closing of delivery routes throughout the country.”

President Andrés Manuel López Obrador in July also announced a new subsidiary of state oil company Petróleos Mexicanos (Pemex) called Gas Bienestar, dedicated to LPG distribution.

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