Mexico's Pemex enters the US market

Pemex, Mexico's state-run energy major, has commenced operations in the US by opening its first gasoline station.

Pemex is planning to expand its foothold in the North American market. Pemex is implementing expansion plan and will set up five gasoline stations in the US initially.

Pemex is suffering from losses from continuous oil price drop. Mexican government has also allowed foreign companies to set up gasoline stations in the country. 

Mexican energy giant Pemex has opened gasoline station in Houston, its first ever unit in the US. Pemex is planning to open five gasoline stations in the US.

The newly-inaugurated station in Houston is part of the pilot program. Considering large Latino population and the market's competitiveness, Pemex has chosen Houston for setting up its gasoline station.

Yahoo News said the opening is part of a strategy by Pemex to expand in the United States. "The pilot program will enable the company to measure the impact of its brand across the border," stated a statement from Pemex.

Petroleos Mexicanos is known with its brand name Pemex. All the gasoline stations of Petroleos Mexicanos are labeled as Pemex brand name. Mexican products including pastries and food are a hit with Mexicans. 

According to CNBC report, some concessionary Pemex stations in Mexico were fined for differences in measurement of gasoline volume.

It was fined for selling less than a full gallon of gas. Mexican government regulates prices of gasoline. Mexican gasoline is cheaper than the US.

Until reforms are introduced in the domestic market a year ago, Pemex enjoyed a monopoly in the Mexican oil and gas sector. Pemex has been struggling with easing production level for long. The declining oil prices of late further impacting the company's financial performance. 

The new gasoline station in Houston is the first one outside Mexico for Pemex. According to a report by Fuel Fix, the chief of alliances and new business development at Pemex said it would test its brand strength by competing in the US market.

Jose Manuel Carrera Panizzo said, "We want to be put to the toughest test. We're trying to bring Mexico closer to American consumers. In terms of historic importance, it's the first time Pemex puts a gas station outside the Mexican borders. We're very excited." 

Mexico's President Enrique Pena Nieto has initiated reforms in the country in 2014. Pena has opened energy sector for private investors. This is considered to be the first time in 76 years of Mexican energy industry.

The Mexican government has also allowed foreign companies for setting up gasoline stations in the country. This comes into effect from 2016 onwards.