Some terms of a Mexican proposal sent in March to Congress to change hydrocarbons legislation would affect competition in the industry and raise prices for consumers, Mexico’s federal economic competition commission said on April 12.

In a statement, the anti-trust watchdog, known as COFECE, also said that if the initiative is approved, it would generate legal uncertainty in the industry and distort the system of oil permits.

The watchdog also criticized part of the legislation that would modify the country’s hydrocarbons law to allow suspensions of permits, saying that could violate companies’ rights.

The proposed legislation is part of leftist President Andres Manuel Lopez Obrador’s efforts to strengthen state control of the energy market at the expense of private capital.

He argues previous administrations skewed the market in favor of business interests and were intent on carving up national oil firm Pemex and power utility the Comision Federal de Electricidad.

COFECE has also criticized previous legislative initiatives on energy put forward by the Lopez Obrador administration.