"There is no reason why we (the government) should be running some of the petrochemical complexes and I think those should be privatised," Blanco told Reuters in an interview.
Mexico, a big crude oil producer but ironically also a major importer of petrochemicals, needed private sector participation in petrochemicals production, he said.
The most urgent administrative measure involved was to allow private companies to buy feedstock at competitive prices, he said, adding the current formula for pricing the feedstock was very inflexible.
"I think this (privatisation) is going to have to happen," Blanco said, but declined to specify whether this also applied to Mexico's state oil company Petroleos Mexicanos [PEMX.UL] (Pemex).
"There is a desperate need in Mexico to increase value-added in petrochemicals," said Blanco, who was in Denmark on a tour of European countries to promote Mexico as an investment destination.