Fuel theft in Mexico is such a big black market that it has its own name — "huachicol" — and the trade generates revenue for dangerous cartels. But one illegal tunnel was recently busted by authorities, putting another dent in the criminal network.
Reuters reported that authorities uncovered a 72-foot-long tunnel connected to an underground pipeline used to steal fuel from state energy company Pemex. The discovery signals progress in efforts to curb a dangerous and costly black market.
Fuel theft has posed serious economic and safety risks in Mexico for years. Criminals working within cartel networks tap pipelines, averting state taxes meant to stabilize pump prices and generate government revenue. These cartel operations destabilize local businesses and wreak havoc on communities.
Accidents happen, too. In 2019, a suspected pipeline tap in Hidalgo's Tlahuelilpan sprung a leak. As locals gathered to collect containers of gas, the leak exploded, killing at least 137 people.
By locating and shutting down secret pipelines, authorities disrupt key pieces of illegal infrastructure used by cartels. The benefits go beyond recovering stolen fuel. Pipeline tampering threatens the lives of nearby residents and first responders. Reducing illegal taps lowers the risk of catastrophic accidents and helps protect public health.
There are also economic implications. Fuel theft costs state-owned energy companies millions each year — losses that can affect public budgets and state investments. Disrupting these operations helps preserve revenue that can be directed to schools, health care, and investments in energy modernization.
Environmental protection is another factor. Whether it's illegal quarries in Trinidad and Tobago or illegal sewer dumping in Taiwan, operations like these can contaminate soil and groundwater, which is especially harmful in rural communities where agriculture depends on clean land and water. By securing these fuel pipelines, authorities are also safeguarding ecosystems that support local livelihoods.
"The operating costs of drug trafficking are financed with peripheral activities … extortion, kidnapping, robbery, fuel theft," said David Saucedo, a Mexican security expert, to the Financial Times.
"Fuel theft and crude oil smuggling are cash cows for CJNG's narco-terrorist enterprise, providing a lucrative revenue stream for the group and enabling it to wreak havoc in Mexico and the United States," said U.S. Treasury Secretary Scott Bessent, referring to Cartel Jalisco Nueva Generacion.
"I don't think they will disappear, but this is the type of action that raises the cost for these networks," fuel expert Samuel León Sáez told InSight Crime about another fuel-theft operation busted in 2025.
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