PEMEX's Debt to Suppliers: Growing Concern

Industry players emphasize the importance of PEMEX promptly regularizing its payments to suppliers for the health of the national manufacturing sector and its productive chains. However, Juan Manuel Chaparro, Vice President, Industrial Development of the Metal-Mechanical Sector of the National Chamber of the Transformation Industry (CANACINTRA), states that the payments made so far have not been sufficient to significantly reduce the debt with these companies.

CANACINTRA warns that it is crucial for PEMEX to promptly regularize its payments to suppliers, both large companies and SMEs. Among the affected companies are screw manufacturers, suppliers of electrical material, electrical equipment and machinery, personal protective equipment, stationery, spare parts, paints, and general services. Delaya in payments have caused financial difficulties for these SMEs, which in turn delay payments to their own suppliers, CANACINTRA told El Economista. 

Despite a slight decrease in PEMEX’s debt, the situation has been worsening over the past few months, creating uncertainty about how it will be paid. PEMEX’s debt closed at US$101.499 billion in 1Q24 and, despite significant government support, the NOC company remains one of the most indebted in the world. Additionally, PEMEX’s debt to suppliers surged by 17.3% to MX$163.207 billion (US$9 billion) as of March 2024, with invoiced obligations dating back to 2023 and 2024 totaling MX$162.881 billion.

More Issues With Suppliers

Concerns have been raised about the quality and regulatory compliance of certain chemicals used by PEMEX in crude oil production. These concerns have led to accusations of increased pollution, placing the company among the most polluting in the world, according to El Economista.

In response to this situation, PAN federal deputy Héctor Saúl Téllez demanded that the Federal Audit Office (ASF) and the Ministry of Public Administration (SFP) investigate PEMEX authorities for the alleged purchase and use of low-quality and highly polluting chemicals in crude oil processing. Téllez argues that this violates environmental regulations and emphasizes the need for ASF and SFP intervention. He also suggests that other environmental agencies analyze the chemicals being used. Additionally, Téllez criticized PEMEX for its lack of environmental friendliness, placing Mexico as the thirteenth most polluting country, and accused the president of using harmful substances to expedite the refining process in Dos Bocas.