Mexico starts oil industry 'rescue' with refinery overhaul

MEXICO CITY (AP) — Mexico's new government has detailed plans to build an oil refinery in the home state of President Andres Manuel Lopez Obrador and to renovate six others as the oil-producing country attempts to lower its dependence on imported fuel.

Energy Minister Rocio Nahle said Sunday that Mexico will import 80 percent of its gasoline needs this year because existing refineries work on average at 38 percent of capacity due to a lack of maintenance and investment. She says the national oil company Pemex should be able to meet 70 percent of Mexico's gasoline needs.

Lopez Obrador has said his government will spend an additional 75 billion pesos ($3.65 billion) next year on Pemex, which has seen its crude extraction plummet to levels not seen in years.