The Superintendency of Competition has approved a request made by the company in January 2014 to acquire eight gasoline stations in the country.
From a statement issued by the Superintendency of Competition in El Salvador:
The Board of the Superintendencia de Competencia (SC) resolved to authorize the application for a merger between Alba Petróleos de El Salvador de SEM de CV resulting from the purchase of eight service stations.
The company was fined $759,924 for failing to petition the Salvadorian Superintendency of Competition to approve to purchase of nine service stations.
In addition to the financial penalty, the Superintendencia de Competencia (SC) demanded that the company submit within 30 days an application to follow the procedure which should have been done in the beginning.
The Venezuelan company plans to open eight new gas stations in the country this year.
The vice president of this joint venture, Luz Estrella Rodríguez, made the announcement, adding that they are venturing into the propane gas market with a greater supply.
As part of its marketing strategy, the company initially, offered lower prices than its competitors, but has gradually aligned its prices with the market.
300 service stations will gradually phase out the acceptance of credit or debit cards as payment
The decision taken by the Employers and Distributors Association of Petroleum Adepetro, and the Salvadoran Association of Distributors of Petroleum Products is in response to reduced profit margins resulting from the application of the new formula for establishing the sales price .
Puma Energy has agreed to acquire ExxonMobil’s commercialization and fuel supply assets in Belize, El Salvador, Guatemala, Honduras, Nicaragua and Panama.
Founded in 1997, Puma Energy has quickly grown into one of the world’s largest independent petroleum commercialization and downstream distribution companies.
The acquisition must still be approved by the corresponding authorities in each country.
The multinational claims to have a long-term plan for investments in the country.
Carlos Reyes, general manager of Texaco in El Salvador, told La Prensa Gráfica, "It is true that we are going to leave the service station business, our strategy is to make the sale of fuel a profitable business for both Texaco and for Salvadoran entrepreneurs working with us.”