Anti-Fuel Theft Measures Saved Millions of Pesos: López Obrador

President Andrés Manuel López Obrador announced significant financial gains resulting from the government's relentless fight against fuel theft, also known as "huachicol." These efforts have led to savings of about MX$307 billion (US$17.9 billion), preventing the need for fuel price hikes.

In a morning press conference, President López Obrador disclosed that the administration's anti-corruption endeavors have contributed MX$2 billion to the treasury. The bulk of the savings, however, stems from the comprehensive campaign against fuel theft, a critical component in the government's broader anti-corruption strategy, he added.

However, between January and September 2023, PEMEX found 11,140 clandestine pipeline taps, the highest figure for a similar period since at least 2010 and an 11.33% increase compared to the same period in 2022.

The government temporarily prohibited fuel imports temporarily to curb the sale of illicit fuels. The measures implemented by the government include a temporary restriction on imports of 68 oil products, primarily industrial-use gasoline. Various energy sector regulators and federal authorities have been instructed to adjust their operations to comply with the decree.

PEMEX has been actively fighting clandestine fuel taps, investing over MX$28 million by August 2023 to seal off illegal connections to gas pipelines, particularly within Puebla. The financial commitment to address fuel theft has surged over the years, reflecting the escalating efforts to counteract this illicit activity. 

Beyond the financial toll, "huachicoleo" presents a multifaceted threat to Mexico's energy security. Its adverse effects include unfair competition, violence, and strains on public resources. Addressing this complex challenge requires a collaborative effort involving government agencies, private entities, and the integration of technological solutions. This multifaceted approach is crucial to curbing the menace of fuel theft and ensuring the resilience of Mexico's energy infrastructure.