Fuel shipments from Texas to Mexico have come to a standstill due to increased inspections by the Mexican government aimed at enforcing tax compliance and curbing illegal imports. For the past two weeks, fuel trucks have been unable to cross the border, leading to a sharp decline in demand. Mexico, the largest importer of U.S. fuel, received 1.15 million barrels daily in January. The border bottleneck may cause supply backups in the U.S. and higher costs for Mexican transporters and gas stations.
In January, Mexico imported 470,000 barrels of gasoline and 237,000 barrels of diesel daily from the U.S. While most fuel imports come by ship, issues at the land border reflect a broader crackdown by the Mexican government. Despite these disruptions, Mexican drivers are unlikely to face immediate price increases due to a six-month fuel pricing agreement. The increased scrutiny is part of President Sheinbaum’s efforts to address tax compliance issues among fuel importers. The border is not expected to reopen before the Easter holidays, according to Rajan Vig, CEO of Indimex Group.
Energy ministry and President Sheinbaum’s spokespersons did not respond to requests for comment. The crackdown on illegal fuel imports comes amid tense US-Mexico trade relations, with President Trump imposing tariffs and threatening to disrupt treaties. Sheinbaum has prioritized combating illegal fuel trade, which costs state oil company Pemex billions annually. Last month, Mexico seized over two million gallons of illegal fuel in Baja California and a tanker carrying diesel in Tampico as part of efforts to curb fuel trafficking.
The Singapore-flagged Challenge Procyon tanker, loaded with fuel at Beaumont, Texas, on March 16, was unaware of the situation, according to Enterprise Products, which supplied the diesel. Last week, Mexico’s tax authority suspended Valero Energy’s import permit over falsified paperwork linked to illegal importers.
Illegal fuel imports remain a significant issue for Pemex, which lost over $263 million to fuel theft in Q3 2024. Pemex has recently called on citizens to report illegal fuel sales and theft.In 2023, Pemex lost at least $1.2 billion to import fraud and fuel theft. A spokesperson stated that the company is collaborating with authorities to combat illegal fuel trafficking.
