Fuel theft has long plagued Mexico, but what was once a localized issue driven by small criminal groups has escalated into a multinational enterprise.

Cuautepec

Fuel theft in Mexico has escalated from a localized crime involving small groups to a sophisticated multinational operation. Every day, approximately 17,000 barrels of fuel are stolen, primarily from state oil company pipelines, resulting in annual losses of around a billion dollars for the Mexican state.

Authorities have uncovered extensive networks, including hoses and pipelines used to siphon fuel, and have seized millions of liters of illegal fuel smuggled from the United States. While arrests have been made at the operational level, no high-ranking officials have been implicated. Experts warn that if the trend continues, fuel theft could surpass drug trafficking as a primary source of revenue for organized crime.

Mexico’s fuel theft grows into multinational criminal business

Tank after tank, all of it illegal. Every day, 17,000 barrels of fuel are stolen in Mexico. Most is taken directly from the state oil company's pipelines, drilled into by criminal networks, large and small, throughout the country. Here in the state of Hidalgo in central Mexico, police have made an all-too-common discovery. They found a hose extending some two kilometers through thick forest on which thieves used to fill up tanks with fuel, which they then sell at a lower price than official gas stations. You don't have to go far in Hidalgo to see the signs of this practice. Pressure hoses drilled into canals, ducts running through rivers. All in all, it represents a billion dollars worth of loss to the Mexican state every year. To get an idea of the challenges of stopping this practice, take a look at this pipeline. In a space of just over 15 meters, we found more than 20 patches where thieves have drilled into the pipe in order to steal fuel. And there are some 11,000 kilometers of pipelines just like this throughout Mexico. But in recent years, this type of theft has been surpassed by fuel smuggling on a much larger level, and which has caught the eye of authorities in both Mexico and the U.S. over the involvement of major criminal groups. Treasury is sanctioning a major Mexican cartel network that is involved in poisoning Americans with fentanyl and fuel theft, which is a cash cow for illicit actors. In March, Mexican officials seized 18 million liters of illegal fuel from vessels coming from the U.S. labeled as different tax-free products. You can import it illegally, mostly from the U.S. So what you do is that you mislabel. Once you can get it across our customs and into our country, you can get gasoline and diesel with a 40% discount. The high profile of recent seizures begs the question of who in the Mexican government is involved in allowing these massive shipments of gas to enter the country undetected. So far, arrests have included people on the operational level of fuel theft, but no high-ranking officials. We are not going to protect anyone. The investigation is taking place at all levels of government. If this trend continues, experts believe fuel theft could soon eclipse drug trafficking revenues for organized crime, making gas the next big front in Mexico's ongoing security conflict. Julia Galeano, Al Jazeera, Cuautepec, Mexico.

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