Four months into his presidency, Lpez Obrador walked up to a podium at Mexico's national palace and declared victory against the hordes of thieves that had been pilfering millions of gallons of gasoline a day from government-run pipes.
Three years ago, the president claimed that they had eliminated fuel theft. He turned around to look at the projected chart behind him. Fuel theft had fallen dramatically under his watch. In November of last year, there were 3.4 million stolen gallons a day, but in April of this year, there were 200,000.
He said that this was proof that corruption is not accepted.
The president of Mexico promised to eradicate corruption and greed when he was elected. He put an end to the pillaging of Pemex fuel. He took extreme measures to discourage theft, which resulted in a nationwide gasoline shortage in January. After sending in the National Guard, he reopened them. Retailers that failed to meet regulatory requirements were shut down.
The decline in gasoline thefts in Mexico appears to be the largest victory yet in the fight against crime. A visit to the streets of the Red Triangle shows the limits of the reach of the anti-drug organization.
On a quiet street in Tecamachalco, a heavyset man wearing ripped jeans and a T-shirt soaked in sweat calculates the day's earnings on his cellphone. El Gordo would steal and resell gasoline. Liquefied petroleum gas is the main fuel for Mexico's food vendors and most of the country's homes.
It wasn't hard. While federal troops are standing guard at the gas and diesel lines, Mexico has over a thousand miles of LPG pipes. A Pemex worker is paid a bribe to tip off thieves like El Gordo when the gas is running through a line. The dangerous part is sucking the gas, which can be poured into a bucket. They need to connect a hose to the pipe to transfer the gas. Home delivery is usually offered by thieves because the fuel is so dangerous.
Although gasoline thefts are down in Mexico compared with four years ago, illegalLPG taps have increased more than 1,000%. The number of taps Pemex discovered last year was up from the year before. It is still a small market, but it is growing rapidly. According to the trade groups, Pemex is losing about $1 billion a year from gas thefts, a third of what it was losing from gasoline thefts.
The five towns that were most notorious for gasoline theft in central Mexico were visited by Businessweek. The poverty and oppression that drives most young men into a life of theft is one of the stories people there tell. They say this is what happens when you treat the symptom.
Carlos Serrano is the director of a Mexican LPG trade group. The opposite has taken place.
The leader of the campaign acknowledged that poverty is a leading cause of gasoline theft. After 137 people were killed in Tlahuelilpan in January, he doubled down on his commitment. He said at the time that they were going to give people options, alternatives and an honest way to get their income.
More than 300 people have received financial assistance since the tragedy, including scholarships, child care support, and coverage for funeral and legal expenses, according to the Mexican Ministry of Welfare. More than 80 billion pesos has been invested in construction projects in the area.
El Gordo and other like him have not been stopped by any of this. He tried to make an honest living by starting his own carpentry business, but he couldn't afford it. He was asked to join their ranks. They told him he could make more money stealing fuel than he could making as a carpenter. On a good day, he can sell as many as 80 cylinders of stolen LPG for 350 to 400 pesos, about 20% to 30% below the market rate, and pocket half the revenue. His profits are 70 times higher than the minimum wage in Mexico and 40 times higher than the average salary in the area.
He used the windfall to buy gifts for his family. El Gordo asked not to be identified because he was afraid of being targeted by government officials. I can go on more vacations with my family. The consequences have also been experienced by him. He pointed to the bullet wounds in his stomach. He said getting shot is an occupational hazard. Now more so than ever, he has seen colleagues die in the trade.
A firefighter in the area says that the disappearance of people is increasing. Two or three bodies are discovered in a month. If you look at the number of other fire departments, you can see there are many more. He attributes the rise in killings to turf wars among fuel theft rings that dump the bodies of victims in pozos.
There has been an increase in violence across the region. Homicides have increased in the first five months of the year in the state. They are up 26% in the state. Pemex security guards, patrol cars, and agents from the attorney general's office have been lynched by huachicoleros. According to local police, criminal groups that engage in gasoline and LPG theft are more likely to be involved in kidnappings, drug peddling, and car thefts.
Complicated relationships have been formed between the communities and the Huachicoleros. Locals have come to depend on others for affordable fuel. They hate and blame them for the increase in violence on their streets.
There is a bar in the state of Hidalgo that serves a cocktail named after the Huachicoleros. The thieves there sell gasoline at half the retail price in order to make up for the high cost of fuel. A government welfare system that often falls short is filled by them.
A man driving through the cobblestone streets of San Bartolo Tutotepec remembers a time when he ran with a group of guys in the middle of the night to get gasoline. He talks about the local thieves while he sells pottery. Fuel thieves in the area gave him free gasoline to visit his hospitalized wife.
According to residents interviewed by Businessweek, they haven't seen any of the aid promised by the government and aren't aware of social programs. Fuel theft is common in both areas. A soldier at a military outpost kicks up dust with his boots. Two illegal taps were reported just that morning after he was sent to guard the Tula-Salamanca gasoline line. The military doesn't have the resources to watch an entire 223 kilometer line in places where cars can't reach.
The military is so focused on gasoline and diesel that it has turned the LPG networks into a free-for-all. He says that organized crime went to the gas company. Between 15% and 20% of the market in the center of the country is flooded with this illegal product, according to our estimates.
Fuel theft is still a problem in Mexico according to theAMLO. He said that gasoline taps were up from a year ago. He mentioned the theft of gas.
He said that the thieves are wrong if they think they can act without fear.
The person is with Rafael Gayol.
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