Mexico Halts Fuel Imports from Texas Amid Smuggling Probe

The Mexican government has suspended fuel imports through the Texas border, according to a report by Bloomberg. For the past two weeks, the border crossing between Texas and Mexico has remained closed to trucks transporting gasoline, diesel, and other fuels, following the implementation of stricter cargo inspections by Mexican authorities.

Bloomberg interviewed a fuel distributor who, under condition of anonymity, said their business "dried up overnight" as client demand plummeted due to the intensified inspections.

US government data shows that in January, Mexico imported 1.15 million bpd of petroleum products from the United States, making it the largest international market for US fuel. That same month, Mexico brought in 470,000bpd of finished motor gasoline and 237,000 bpd of diesel.

On March 31, Mexican authorities announced the seizure of 10 million L of diesel that had been falsely labeled as oil additives at the port of Tampico, Tamaulipas.

In response, Mexico’s Attorney General’s Office (FGR) launched an investigation into customs officials and shipping agencies linked to the Singapore-flagged tanker Challenge Procyon. Attorney General Alejandro Gertz says that customs documentation had been falsified, with both fuel type and volume inaccurately declared. “With this false information, we cannot verify anything until we receive complete records from international sources,” says Gertz.

According to Elefante Blanco, the FGR is investigating seven maritime agencies possibly involved in the vessel's operations at Tampico. These include Agencia Rojas Vela y Asociados (Rovesa), Vismar Ship Supplier, Marine Cargo Inspection and Supervision (MCIS), Naval Mexicana, Nautilus Agency, Altamarítima, and Mexshipping Agency.

Last week, Bloomberg reported that Mexico’s tax authority temporarily suspended Valero Energy Corp.’s importer registration due to allegedly falsified paperwork submitted by illegal importers, who were apprehended during undercover government operations. The information came from a source familiar with the matter, who requested anonymity due to the ongoing investigation.