Sources say that US fuel exports by land to Mexico have been halted due to increased scrutiny.
Three sources with knowledge of the matter confirmed on Tuesday that the Mexican government had halted the importation of U.S. gasoline into Mexico by road as part its crackdown on illegal deals.
One source involved in the delivery of such trucks said that Mexican authorities are investigating import permits and increasing cargo inspections.
The sources stated that there was no timetable for the return of the trucking business, and that fuel deliveries by rail or water to Mexico via the U.S. were not affected.
Sources requested anonymity because the matter was not public. Requests for comment from the Mexican government and Pemex, the state-owned energy firm, were not answered.
Pemex, Mexico's largest crude oil producer struggles to refine its heavy sour Maya crude grade.
Mexico is the largest buyer of U.S. gasoline. According to the most recent U.S. Energy Information Administration statistics, U.S. fuel and oil exports to Mexico averaged 35.66 millions barrels a day.
Fuel smugglers have found the trading route lucrative, and Mexico has now passed a law to combat illegal fuel trade by 2023. Mexican authorities seized several fuel trucks and a vessel in recent months for what they claimed were illegal cargos.
Mexican Security Minister Omar Garcia Harfuch announced on March 31, that federal authorities seized in Tamaulipas a tanker that contained 10 million liters diesel, along with 192 container and 29 vehicles for transporting motor fuels.
He said that on March 28, federal authorities had seized about 8,000,000 liters in hydrocarbon products and containers, as well as vehicles and motor fuel pumps used for transport.
The U.S. border with Mexico has been under increased scrutiny due to President Donald Trump's crackdown against illegal immigration and drug trafficking. The U.S. Army has received nearly 110,000 acres along the border to prevent illegal immigration. The Interior Department announced on Tuesday. (Reporting and additional reporting by Stefanie Eschenbacher, editing by Stephanie Kelly & Leslie Adler; Reporting by Shariq Khan; Additional reporting by Stefanie Khan)
(source: Reuters)
