Fuel Theft Poses First Big Battle for Mexican President

AP photo by Eduardo Verdugo
In this Sept. 7, 2014 photo, new pipelines to carry gas from Texas to Mexico, eventually reaching the city of Guanajuato, are laid underground near General Bravo, Nuevo Leon state, Mexico. Mexico’s President Andres Manuel Lopez Obrador said Monday, Jan. 7, 2019 that he has shut down some pipelines to stop fuel thieves who he says have established an illegal distribution network.

MEXICO CITY (AP) — Mexico's new president has shut down some pipelines to stop fuel thieves who he says had established an illegal distribution network.

The fight against thefts of $3 billion per year from government pipelines and fuel depots represents the first big domestic battle for Andres Manuel Lopez Obrador, who took office on Dec. 1.

Lopez Obrador said Monday that some gangs had actually built warehouses over pipeline rights of way to drill illegal taps into the ducts.

The pipeline shutdowns and a temporary switch to more distribution by tanker trucks has caused gasoline shortages in a handful of states.

Despite the political costs of the shortages, Lopez Obrador said he will not fold, noting "let's see who gets tired first, the fuel thieves or us."

 

Source: AP

Categories: Oil and Gas, Today’s Business News, World News

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