Mexico’s Crackdown on Illegal Fuel Trade Yields 48.4 Billion Pesos in Additional Tax Revenue

-Editorial 

Mexican President Claudia Sheinbaum announced Oct. 21 that federal efforts to combat illegal fuel trafficking have resulted in 48.4 billion pesos in additional reported fuel tax revenue through September 2026, as authorities expand enforcement operations, strengthen monitoring systems and investigate suspected tax evasion across the country’s energy sector.

The increase in revenue from the Special Tax on Production and Services, known as IEPS, comes after the government identified an estimated 61 billion pesos in unpaid fuel taxes during 2025.

Speaking during her daily news conference, Sheinbaum attributed the increase to coordinated enforcement efforts targeting irregularities in fuel imports, transportation, distribution, storage, and retail sales.

According to the president, authorities have detained individuals involved in suspected illegal fuel operations, including importers and distributors, while canceling gas station permits and reviewing commercial fuel licenses.

Sheinbaum said the administration is also considering legislative changes to strengthen oversight of fuel marketers and reduce opportunities for illegal transactions.

Energy Secretary Luz Elena González Escobar said 16 federal institutions are coordinating information-sharing efforts to identify discrepancies in fuel transactions.

The government established a Hydrocarbon Data Analysis Center to track fuel movements throughout the supply chain, from importation to final sale.

According to González, authorities identified discrepancies involving approximately 8.8 billion liters of fuel in 2025, representing an estimated 61.8 billion pesos in potentially unpaid taxes.

The government said companies responsible for irregular transactions would be required to address outstanding tax obligations and could face administrative or criminal proceedings.

Deputy Energy Secretary Juan José Vidal Amaro reported that registered fuel sales subject to IEPS increased 13.4% between 2025 and 2026, compared with a 4.4% increase during the previous year.

Federal officials also reported a 10.54% increase in registered fuel imports, from approximately 23.9 billion liters to 26.5 billion liters.

Authorities identified and corrected import declarations involving approximately 1.95 billion liters of fuel suspected of being improperly brought into Mexico, representing an estimated 13.7 billion pesos.

Customs officials have issued 500 fines for inaccurate or late reporting, while eight customs agents face administrative or legal proceedings, according to the government.

Enforcement measures have extended to fuel retailers and transportation companies.

The National Energy Commission reported registering 61,557 fuel transportation units equipped with GPS monitoring and QR identification systems. The agency also canceled 264 retail permits and initiated sanction proceedings against 307 permit holders.

Mexico’s Tax Administration Service, or SAT, reported closing 2,224 companies operating without required permits and issuing 6,483 fines involving 2,032 gas stations.

The agency also removed 180 companies from its registry over suspected smuggling activities and identified 175 businesses allegedly involved in fraudulent invoicing.

Federal authorities reported submitting thousands of complaints to the Attorney General’s Office, including 10,674 cases involving alleged fuel theft reported by state-owned Petróleos Mexicanos, or Pemex.

Additional referrals included 152 cases from SAT involving suspected smuggling and fuel-volume reporting violations, 127 from federal tax prosecutors, 150 from the National Energy Commission and 11 from customs authorities.

Security operations conducted by federal law enforcement agencies have resulted in 2,539 arrests, the seizure of 5,572 transportation units and the confiscation of approximately 173.7 million liters of fuel, according to the administration.

The government did not specify how many of the arrests have resulted in convictions or provide independent verification of the reported enforcement results.

The announcement also included an update on Pemex’s production, refining operations and financial position.

Pemex Director General Juan Carlos Carpio Fragoso reported that crude oil production remains at approximately 1.76 million barrels per day, below the government’s target of 1.8 million barrels.

Natural gas production increased 7.5% to approximately 4.92 billion cubic feet per day, according to the company.

Pemex also reported that domestic crude oil refining has increased 81% since 2018, rising from 612,000 barrels per day to approximately 1.11 million barrels.

The company attributed the increase to improvements at existing refineries and the incorporation of the Olmeca refinery into its operations.

Production of gasoline, diesel and aviation fuel increased from approximately 350,000 barrels per day in 2018 to just over 1 million barrels daily in 2026, according to Pemex.

The company reported that its gasoline and diesel sales increased 17.9% during the first nine months of 2026 compared with the same period in 2025, representing an additional 160.6 billion pesos in sales.

On the financial side, Pemex said it reduced its outstanding debt by more than $20 billion over two years, bringing its debt level to its lowest point since 2014.

Company officials said the reduction would help lower interest expenses and free additional resources for production, refining, and petrochemical investments.

Pemex also reported allocating approximately 6.6 billion pesos to community support programs between 2025 and September 2026.

The company outlined plans to invest 1.8 trillion pesos through 2030 to maintain oil production, expand refining capacity, and strengthen petrochemical operations.