Pemex Loses 101 Million Pesos Daily to Fuel Theft

Mexico's state-owned oil company, Pemex, is suffering its most severe operational losses in eight years due to fuel theft, commonly referred to as "huachicol."

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With huachicol, Pemex's pipelines continue to be affected, and obviously, this is done with the participation of officials who are involved, including the union. Also, at the storage and distribution terminals, they deliver tankers that do not leave directly or set aside petroleum products that are not accounted for in Pemex's sales.

Between April and June, the illegal siphoning of crude oil, gasoline, diesel, and jet fuel resulted in an operational loss of 9.18 billion pesos (approximately $540 million USD). This figure represents a daily loss of 101 million pesos and marks a 20% increase compared to the same period last year, despite government efforts to combat illegal fuel extraction and smuggling.

Analysts suggest that the stolen fuel creates a black market, with some gas stations selling it at significantly lower prices. Experts also point to sophisticated schemes involving technical smuggling, tax evasion, and manipulation of the logistics chain. The issue is further complicated by "fiscal huachicol," which involves smuggling fuels under different tariff codes to pay less tax. Additionally, illegal fuel mixtures are being supplied at service stations.

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Despite the federal government's efforts in terms of seizures, searches, and arrests, the illegal hydrocarbon extraction continues to strongly erode public finances.

The consequences extend beyond Pemex's financial losses. Each liter of fuel sold illegally represents a triple loss for the country: the product's value for Pemex, the evasion of key taxes like IEPS and VAT, and a reduction in the company's capacity for crucial investments in infrastructure, exploration, and refining. This, in turn, pressures the national budget.

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Each liter of fuel sold illegally represents a triple loss for the country: the value of the product for Pemex is eliminated, key taxes (IEPS and VAT) are evaded, and the company's capacity to invest in infrastructure, exploration, and refining is restricted. In turn, this pressures the national budget.