Mexican Cartels Smuggle Dangerous Bootleg Gasoline into the U.S.

Mexican drug cartels are diversifing their "exports" tothe United States, increasingly turning to fuel theft as a lucrative revenue stream, smuggling stolen gasoline and crude oil into the country. Reports about organized crime are increasingly showing how the fuel is then sold on the black market in the U.S. and other countries, causing major damage to vehicles and people.

According to Crashout Media, there is a growing "U.S.-Mexico petroleum theft ring that involves cartels, corrupt Mexican officials and criminal U.S. brokers," and the U.S. government seems to be aware.

The U.S. Department of the Treasury recently imposed sanctions on two Mexican transportation companies—Servicios Logisticos Ambientales and Grupo Jala Logistica—and three individuals linked to the Jalisco New Generation Cartel (CJNG). These entities are accused of transporting stolen fuel and crude oil from Mexico into the U.S., generating hundreds of millions of dollars annually for the cartel.

Fuel theft, known in Mexico as "huachicol," involves tapping into pipelines owned by the state-run oil company, Petróleos Mexicanos (Pemex). Thieves, often with the assistance of corrupt officials, siphon off fuel to sell on the black market, disguising it as waste oil or other legal cargo. The oil is mixed into a semi-refined fuel that causes damage to vehicles, as well as causing fatal explosions.

This illicit activity has resulted in significant financial losses for Pemex and the Mexican government. Fuel theft has become so pervasive in Mexico that it's estimated to cost Pemex and the federal government upwards of $3 billion annually. Despite heightened military patrols and crackdowns, cartels have adapted by targeting more remote or unguarded pipeline sections.

In some cases, armed cartel members have forced tanker trucks to unload fuel at gunpoint. Mexican authorities confirmed in October 2023 that gunmen believed to be working for the CJNG hijacked a convoy of Pemex tankers in Guanajuato and redistributed the gasoline to black-market vendors.

In a notable case last month, the Utah-based Lael-Jensen family was indicted for conspiring with Mexican criminal organizations to smuggle nearly 2,900 shipments of stolen crude oil into the U.S., mislabeling it as "waste oil" to bypass import regulations. The operation, run through their facility in Cameron County, Texas, allegedly relied on oil stolen from Pemex.

The CJNG, designated as a Foreign Terrorist Organization by the U.S. in February 2025, has been diversifying its criminal enterprises to include fuel theft and smuggling. These activities not only fund their drug trafficking operations but also contribute to violence and corruption in Mexico and the U.S.

The U.S. government continues to target these networks through sanctions and law enforcement actions, aiming to disrupt the cartels' financial infrastructure and curb the flow of illicit goods across the border. As cartels expand into fuel theft and smuggling, the complexity of transnational organized crime increases, necessitating coordinated efforts between U.S. and Mexican authorities to address these evolving threats.