Sheinbaum Visits Tula Refinery; PEMEX Pushes Downstream Recovery

President Claudia Sheinbaum made a recent visit to the Refinería Miguel Hidalgo “Tula” in Hidalgo, underscoring the federal government’s renewed emphasis on strengthening PEMEX’s downstream operations amid broader efforts to reduce fuel imports and boost domestic refining capacity. The visit comes as the country’s refining sector shows early signs of recovery after years of underinvestment and operational challenges.

During her visit, Sheinbaum highlighted the strategic importance of Tula in Mexico’s refining network, noting improvements in processing levels and the deployment of upgrades that enhance fuel production efficiency. She reiterated her administration’s commitment to energy sovereignty and reduced dependence on imported fuels, situating the refinery’s progress within the government’s broader energy policy.

PEMEX has reported that the Tula refinery has significantly improved its processing volumes over the past year, reflecting a broader uptick in refinery throughput across the national system. According to industry data, utilization rates at Tula reached nearly 79, one of the highest among Mexico’s refineries by late 2025 and a notable improvement compared with earlier periods when many plants operated below half of their capacity.

The Tula refinery’s modernization, including the installation of hydrodesulfurization units and other processing improvements, is part of PEMEX’s effort to adopt cleaner and more efficient technologies that increase gasoline and diesel output while reducing environmental emissions.

Sheinbaum’s remarks at Tula also stressed that the government’s policies have reversed decades in which refineries in Mexico suffered from neglect and underperformance. At a separate public event earlier this month, she asserted that the national refining system today processes a much higher share of the gasoline consumed in the country than in past administrations, reflecting an ongoing shift toward domestic fuel production.

Historically, the refining arm of PEMEX has been a persistent drag on profitability, in part due to underutilized capacity, ageing infrastructure and a legacy of losses. Downstream operations for many years lost money on each barrel processed, particularly for heavy residual products with lower market value. Analysts have frequently noted that even as crude production garners attention, the refining segment has struggled to turn meaningful profits and continues to undermine PEMEX’s financial stability.

Despite these structural challenges, improvements in refining output and growing throughput across several facilities have fed optimism among industry watchers. The increase in processing has also contributed to a decline in crude exports as more of the country’s production is directed to domestic refineries, a strategic shift aimed at bolstering self-sufficiency. Petrol exports, especially of heavier grades, have dropped sharply in recent months as refineries like Tula and others boost volumes. 

Sheinbaum’s visit also touched on the broader downstream strategy that integrates the work at Tula with other elements of Mexico’s energy transition. While her government remains committed to state leadership in energy, it has also acknowledged the need for partnerships with private actors to accelerate technological upgrades and operational efficiency in refining, petrochemicals and logistics. This mixed approach seeks to leverage both public capacity and private sector innovation, though regulatory changes and political debates continue to shape the scope of private participation.

Despite progress, challenges remain. Refineries across Mexico are still operating well below their design capacities, and certain facilities continue to struggle with operational setbacks, such as outages and crude quality issues that have affected throughput at times. Analysts caution that although refiners are on an upward trajectory, sustained investment and technical performance will be necessary to fully realize gains in self-sufficiency and profitability.