Mexico fuel smuggling reaches 3.1 trillion pesos in estimated market value

Illegal fuel smuggling, known as ‘huachicol,’ has evolved into a massive criminal enterprise in Mexico. Between 2018 and 2025, an estimated 147 billion liters of fuel were moved through illegal channels, representing a potential market value of 3.1 trillion pesos (approximately 160 billion USD). This figure is equivalent to roughly 8.8% of Mexico's GDP.

Authorities estimate that over 600 billion pesos in special tax (IEPS) was evaded through these clandestine schemes. The scale of this illicit economy has attracted drug cartels, who have turned fuel smuggling into a primary revenue source, second only to narcotics.

In a related development, a high-profile seizure announced by the Fiscalía General de la República (FGR) involving 59 million liters of suspected illegal fuel at a Grupo Simsa plant in Guanajuato has faced scrutiny. Security Secretary Omar García Harfuch recently acknowledged that the legality of the fuel had not been confirmed. Grupo Simsa has denied the allegations, presenting documentation to prove the legality of its operations at the facility.