Local Economies Hit by PEMEX Delayed Payments

Mexico’s oil-dependent states are grappling with economic challenges as delayed payments from PEMEX disrupt local supply chains and employment. While PEMEX began partial payments to suppliers in December 2024, business leaders say these measures fall short of resolving the financial strain caused by outstanding debts.  

Over MX$60 billion of PEMEX’s debt is owed to local companies, with approximately 120 businesses in Tabasco and Campeche holding direct contracts. The delayed payments have impacted the job markets of oil and gas-dependent states, including Tabasco, Campeche, and Tamaulipas, where significant employment declines were reported in 2024.  

In December, PEMEX paid between 3% and 5% of its debt to suppliers. These funds helped businesses meet critical obligations such as taxes, salaries, and contributions to the Mexican Social Security Institute (IMSS) and the National Workers' Housing Fund Institute (INFONAVIT). However, contractors stressed that these payments were insufficient to cover operational costs or generate profits.  

President Claudia Sheinbaum has announced a plan for PEMEX to settle its remaining debts by March 2025, with additional payments scheduled for February and March. “Payments are being scheduled now for February and March, and the process will be concluded by March,” Sheinbaum stated.  

The delayed payments have coincided with job losses in oil and gas states, particularly in Tabasco, where employment dropped by 12% in 2024. This decline is attributed to reduced PEMEX spending and the transition from construction to testing phases at the Olmeca refinery. Nationally, Mexico saw formal employment grow by 213,993 jobs in 2024, but the pace slowed compared to previous years. Analysts warn that labor market challenges will persist in these regions, as PEMEX faces budgetary constraints and the Sheinbaum administration shifts priorities.  

PEMEX is also undergoing significant restructuring efforts, which aim to simplify its corporate structure, consolidate subsidiaries, and enhance efficiency, says Sheinbaum. These changes include the adoption of secondary legislation for the energy sector, expected in February 2025. The reforms are part of a broader strategy to strengthen PEMEX as a public company while improving transparency in accounting practices.  

Beyond domestic challenges, PEMEX may face headwinds from recent shifts in US energy policy. President Donald Trump’s withdrawal from the Paris Climate Agreement and declaration of a “national energy emergency” have raised concerns about increased US fossil fuel production driving down global oil prices. Analysts warn that such developments could reduce PEMEX’s revenue and impact Mexico’s fiscal stability.