Introduction
In December 2018, President Andrés Manuel López Obrador declared war on “huachicol,” the illegal tapping and smuggling of gasoline and diesel in Mexico. However, this battle has proven to be a losing one, not only damaging Mexico’s economy and energy security but also directly linking it to criminal organizations.
The Rise of Fuel Theft and Its Financial Impact on Criminal Groups
The theft and smuggling of gasoline and diesel generates massive, multimillion-dollar revenues for the criminal groups involved. These resources enable them to expand their illicit activities across Mexico and even transcend borders into the United States and Central America.
According to data provided by Petróleos Mexicanos (Pemex) through its Transparency platform, during the first four years of Enrique Peña Nieto’s administration (2013-2018), the petroleum company reported 28,835 illegal taps on ductos transporting gasoline, diesel, and liquefied petroleum gas.
In contrast, during the same period of López Obrador’s government (2019-present), 62,441 illegal punctures were registered. This represents an 117% increase in fuel theft during the government that promised to eradicate it.
Political Connections and Fuel Smuggling
Various journalistic accounts have pointed to a long list of individuals affiliated with Morena, who are reportedly involved in gasoline smuggling from the United States, disguised as legal operations through ghost companies and false invoicing.
Some of these names mentioned include Sergio Carmona (deceased in 2021), Américo Villarreal (current governor of Tamaulipas), Ricardo Peralta (former undersecretary of the Interior), and Horacio Duarte (ex-head of Customs).
Now, under Claudia Sheinbaum’s leadership as head of the Mexico City government, the situation remains unchanged. In late March, elements of the Security Cabinet seized an impressive cargo of 10 million liters of diesel in the port of Altamira, Tamaulipas.
This cargo had entered the country aboard the megaship Challenge Procyon from Texas, initially declared as an additive for vegetable oils. However, after inspection, it was confirmed to be illegal hydrocarbons.
US Actions Against Mexican Criminal Groups
The gravity of the situation has prompted the US Department of Treasury to impose sanctions on three Mexican drug traffickers and two companies, accused of fentanyl trafficking, fuel theft, and oil smuggling in collaboration with the Jalisco New Generation Cartel (CJNG).
These sanctions, which include asset freezing and trade restrictions, directly impact the finances of these criminal organizations by cutting off their funding sources and disrupting their illicit operations.
Political Complicity and the Path Forward
Once again, Américo Villarreal’s name surfaced in this corruption and fuel smuggling narrative. Although the governor has denied these accusations, these versions add a layer of political complicity to the fuel theft issue in the region.
It is evident that Claudia Sheinbaum’s government must strengthen security at petroleum facilities and improve monitoring and control systems for fuel distribution.
Moreover, the Fiscal General de la República must advance with ongoing investigations since 2019 to prosecute all involved parties, regardless of their political affiliations or current cabinet positions.
Unless those in Palacio Nacional are interested in creating another farce – “welfare huachicol” – the situation must be addressed decisively.
Key Questions and Answers
- What is “huachicol”? Huachicol refers to the illegal tapping and smuggling of gasoline and diesel in Mexico.
- How has fuel theft increased under López Obrador’s administration? Fuel theft has risen by 117% during López Obrador’s government, with 62,441 illegal punctures reported from 2019 to present.
- Who are some individuals linked to fuel smuggling? Names mentioned include Sergio Carmona, Américo Villarreal (current governor of Tamaulipas), Ricardo Peralta, and Horacio Duarte.
- What actions has the US taken against Mexican criminal groups? The US Department of Treasury has imposed sanctions on three Mexican drug traffickers and two companies for fentanyl trafficking, fuel theft, and oil smuggling.
- What must be done to address the fuel theft issue? The Mexican government should strengthen security at petroleum facilities, improve monitoring systems, and prosecute all involved parties.
