In Mexico the body count increases as fuel theft booms

By Amy Stillman, Bloomberg Businessweek

Buying stolen gasoline in the central Mexican state of Puebla is easy, and costs Pemex, Mexico's oil and gas company, more than $1.1B USD a year.

Buying stolen gasoline in the central Mexican state of Puebla is easy, and costs Pemex, Mexico's oil and gas company, more than $1.1B USD a year. (Photo Credit: depositphotos.com)
 

Buying stolen gasoline in the central Mexican state of Puebla is easy. Pull off the main highway into a busy parking lot, and the black marketeers are waiting in pickup trucks loaded with jerrycans. They’ll siphon the fuel into your tank—boasting as they do that unlike a lot of the country’s regular gas stations, they don’t cheat customers.

While this illegal curbside commerce has been going on for decades, it has exploded in the past few years and now costs Pemex, Mexico’s state oil and gas company, more than 20 billion pesos ($1.1 billion) a year. The huachicoleros, as the fuel thieves are known in Mexico, dig up pipelines and hijack tanker trucks. These techniques have made Puebla, with its heavy vehicular traffic and extensive pipeline system, a target for organized crime looking to diversify their profit streams. The country’s drug cartels have muscled their way in, with predictable mayhem. Nine people died in a July 2 shootout between rival gangs of robbers in Puebla. And at least 15 people have died in military operations to take out fuel theft rings over the past several months in an area of the state known as the Red Triangle.

A clash between rival gangs of huachicoleros in the Puebla municipality of Huehuetlán el Grande left nine people dead in July.  Photographer: Cesar Rodriguez/Bloomberg

A clash between rival gangs of huachicoleros in the Puebla municipality of Huehuetlán el Grande left nine people dead in July. Photographer: Cesar Rodriguez/Bloomberg
 

The government has started cracking down because it needs to draw foreign capital into the energy sector, where oil output has been sagging because of a combination of underinvestment in exploration and production, aging wells, and deficient infrastructure. The country has a population about five times that of Texas, yet the U.S. state’s fuel pipeline grid is 35 times larger.

This is a frightening and unsure time for communities in Mexico. Amy Stillman, Bloomberg, reports, "Fernando Chavala, a truck driver, says he was out of work for six months last year when the company he was working for had one of its 62,000-liter trucks stolen and stopped sending out deliveries. “When you’re on the highway, you never know what could happen,” he says, as he waits to fill up at a Pemex terminal in Puebla’s state capital. “We don’t have any security.”"

Read More at Bloomberg Businessweek

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