Introduction
After enduring significant neglect and plunder during neoliberal governments that favored systematic dismantling and privatization, Mexico’s state-owned petroleum company, Petróleos Mexicanos (Pemex), is experiencing a much-needed transformation and improvement under the current and previous administrations of the Fourth Transformation.
The Decline and Subsequent Revival
During the neoliberal era, Pemex suffered from excessive debt, resource extraction without adequate government support, and a downward spiral in production. However, with the arrival of the Fourth Transformation governments, this trend has been reversed.
Under the leadership of former President Andrés Manuel López Obrador, substantial investments were made in rehabilitating six domestic refineries (Hidalgo, Oaxaca, Veracruz, Guanajuato, Tamaulipas, and Nuevo León) and constructing the Olmeca refinery in Tabasco. Additionally, Pemex acquired the Deer Park refinery in Texas, USA.
Impact on Fuel Production
These strategic investments have led to a significant increase in fuel production, reaching its highest level in a decade. This resurgence poses a challenge for US refineries, as Mexico is becoming less reliant on fuel imports from its northern neighbor.
- In 2025, Pemex’s gasoline and diesel imports dropped to their lowest levels in 16 years due to the increased operational rates of its refineries.
- The commissioning of the Olmeca refinery in Dos Bocas, Tabasco, and the coquization unit at Tula refinery have contributed to the rise in fuel production.
Financial Stability and Credit Rating Improvement
Beyond the revival of fuel production, Pemex’s financial situation has markedly improved.
- Under the stewardship of former President López Obrador, Pemex’s financial debt decreased by approximately $20 billion compared to 2018, placing it at its lowest level in the past 11 years.
- This financial discipline, coordinated with the Secretariats of Finance and Energy, enabled Pemex to pay suppliers nearly $40 billion in pesos during 2025, normalizing operations and strengthening production chains.
Credit rating agencies acknowledged these positive developments, upgrading Pemex’s credit rating for the first time in over a decade.
Operational Achievements
Pemex’s Director General, Víctor Rodríguez Padilla, highlighted the company’s operational successes during a press conference with President Claudia Sheinbaum.
- Pemex compensated for maturing field declines and stabilized production.
- The company processed approximately 1.5 million barrels of crude daily, with notable contributions from Olmeca, Tula, and Deer Park refineries.
Rodríguez Padilla emphasized that Pemex increased the production of high-value refined products like gasoline, diesel, and turbine fuel while decreasing residuals such as fuel oil.
The company aims to achieve 80% high-value refined products, with an average refinery margin of $12 per barrel, confirming that “refining is a profitable business for the benefit of the Mexican people.”
Government Recognition and Future Goals
President Claudia Sheinbaum acknowledged the positive outcomes, stating that processing oil domestically and maintaining eight refineries strengthens Mexico’s sovereignty, reduces imports, and generates value.
Sheinbaum praised Pemex’s increased integration and efficiency, emphasizing the company’s recovery from decades of privatization attempts.
The final step, according to Sheinbaum, is reducing fuel prices as promised by former President López Obrador, which would benefit all Mexicans.
