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Major Crackdown on Fuel Smuggling Operation
Mexican authorities have dismantled a sophisticated fuel smuggling network that was moving millions of liters of stolen petroleum products across the US-Mexico border. The operation resulted in the arrest of 14 individuals, including high-ranking Mexican naval personnel allegedly involved in the illicit trade.
Timing Coincides with US Diplomatic Visit
The bust comes just days after US Secretary of State Rubio visited Mexico to discuss joint efforts against organized crime. The timing suggests coordinated action between the two nations against criminal enterprises that have diversified beyond traditional drug trafficking.
The Huachicol Phenomenon
Fuel theft, known locally as huachicol, has become one of the most lucrative revenue streams for Mexican cartels. According to the US Financial Crimes Enforcement Network (FinCEN), it represents the primary non-drug related illegal income source" for criminal organizations.
"This trade has become a cash cow for the narco-terrorist activities of the Jalisco Cartel," stated US Treasury Secretary Scott Bessent, emphasizing the national security threat posed by fuel smuggling.
Two Methods of Operation
The criminal networks employ two primary methods: unregistered fuel smuggling via oil tankers from the US to Mexico to evade taxes, and large-scale tapping of Mexican pipelines to sell oil on domestic and international black markets. The National Organization of Petroleum Exporters estimates daily earnings of approximately $49 million from these activities.
Human and Economic Costs
Beyond financial losses—state oil company Pemex has lost $3.8 billion over the past five years—the practice poses severe safety risks. In 2019, 137 people died in Tlahuelilpan when stolen fuel ignited, causing a catastrophic explosion.
Government Response and Challenges
Mexican authorities have launched an aggressive strategy against fuel theft, arresting dozens and recovering 40 million liters of stolen fuel. However, the involvement of government officials and military personnel complicates enforcement efforts. Two marines suspected in the recent bust died under suspicious circumstances—one reportedly by suicide, the other in a training "accident."
The Mexican prosecutor's office has indicated that "many more people" will be arrested in coming weeks, likely including government officials and possibly members of the ruling Morena party.
