The US Treasury Department has sanctioned Mexican nationals and entities connected to a fuel smuggling network that funnels revenue to some of the country’s most powerful drug cartels. The action is the latest in a series of enforcement moves targeting the lucrative underground fuel trade known in Mexico as huachicol.
Since September 2024, the Treasury’s Office of Foreign Assets Control (OFAC) has designated 12 Mexican nationals and over 28 organizations tied to fuel theft networks associated with the Cartel Jalisco Nueva Generacion (CJNG). The cartel reportedly generates hundreds of millions of dollars annually from these operations alone.
How the smuggling machine works
The networks tap directly into pipelines, bribe Pemex employees for access and information, and transport stolen fuel across the US border. The product is often disguised as waste oil to avoid detection.
Fuel theft schemes have resulted in billions of dollars in losses for Pemex and the broader Mexican economy.
