Refined oil halted through pipelines, as Pemex concedes to narco oil theft

Posted by Pepe republished from Proceso 

Announcement comes amid an annual increase of 70 percent in the number of illegal pipeline connections operated by organized crime 

"This is a great admission of vulnerability by Pemex," says George Baker, an industry analyst

In a bid to curb the theft of fuel through its pipeline network across the country, Petroleos Mexicanos (Pemex) announced it will stop using the pipelines for the transportation of refined fuels.

"In order to strengthen security in the transport of fuels, Pemex will use its pipelines only for unrefined gas and diesel, which is unfit for use in vehicles and industrial plants," the oil giant said in a statement.

Henceforth, the final mixing of such products will be made directly at the 77 Pemex storage terminals in the country, prior to delivery to automotive vehicles and industry.

"Users are advised to ensure that the fuels they are buying are from Pemex terminals, and warned against buying gasoline and diesel from any other facilities or stations not part of the Pemex distribution system, warning such fuels can harm engines," the statement added.

It was also stated that customers should request proof of payment at the gas station.

Pemex has a network of 14,282 kilometers of oil and gas pipelines through which it now will only carry unrefined gasoline and diesel.

This change in strategy began in Tabasco, but the goal is to be applied gradually throughout the country.

Last year the oil company suffered loses from illegal extraction of fuels through 3,600 illegal taps.

Below is an excellent full length video byVice about fuel theft and its affect on Mexican society