Business · Energy & Commodities · 3 hrs ago

Mexico studies limits on fuel intermediaries in crackdown on fuel smuggling

Mexico studies limits on fuel intermediaries in crackdown on fuel smuggling

Mexico is considering legal changes to limit fuel trading companies as part of a government crackdown on fuel smuggling and tax evasion.

President Claudia Sheinbaum said the government is examining the changes because it has identified irregularities among some fuel intermediaries.

The consultancy QUA Energy Consultores says possible options include routing imports directly to transport companies or limiting intermediaries’ role.

The government wants to track fuel from import to sale by comparing tax, customs and commercial records with volumes declared, transported, invoiced and sold.

The article says fuel smuggling has cost the country 600 billion pesos, while companies that buy and resell fuel without their own infrastructure could face operating changes.

No rule has yet been announced that removes all fuel traders or revokes their permits, and any individual penalty would require a legal basis and due process.

Companies are advised to strengthen tracking and keep records consistent while monitoring any formal bill, its passage through the legislature and the rules that follow.

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What people are saying

Carlos Vallejo GalvánQUA Energy Consultores partner
The immediate priority for permit holders is to strengthen traceability and documentary consistency, and to follow regulatory developments.
via El Universal
For now, it cannot be concluded that there is a rule eliminating all fuel-trading companies or ordering a general revocation of their permits.
via El Universal