Mexico is significantly increasing its domestic gasoline production, a move the management of President Claudia Sheinbaum Pardo touts as a victory for national energy independence. The contry now refines 80% of its gasoline needs, a substantial jump from 30% in 2018, reversing decades of declining capacity and reliance on foreign imports-primarily from the United States. this achievement follows a concerted effort to rehabilitate existing refineries and invest in new infrastructure, a policy shift directly addressing longstanding concerns about energy security and economic sovereignty.
Mexico is now refining 80% of the gasoline it consumes, a significant increase from 30% in 2018, according to President Claudia Sheinbaum Pardo. The shift marks a key achievement for the current administration’s energy policies, which aim to strengthen national energy independence.
“Energy sovereignty represents national sovereignty,” Sheinbaum Pardo said Monday during her regular press conference. The comments came after a visit to the Tula refinery in Hidalgo, where the installation of a naphtha hydrodesulfurizer reactor began as part of a broader modernization effort.
Sheinbaum Pardo explained that during the “neoliberal period,” a deliberate effort was made to dismantle Pemex, the state-owned petroleum company, for both ideological and financial reasons. She stated that those who governed at the time believed state-owned strategic enterprises had no place in a modern economy and should be privatized.
She also alleged widespread corruption within Pemex, with individuals illegally siphoning resources from the company. She emphasized that the public and workers were instrumental in preventing the privatization of Pemex and the Federal Electricity Commission (CFE).
According to Sheinbaum Pardo, the goal during the neoliberal era was to dismantle Pemex by privatizing services, reducing the workforce, and outsourcing to private companies. She added that successive administrations largely abandoned gasoline refining, focusing instead on crude oil extraction and export, arguing that refining operations were unprofitable.
She explained that the strategy involved extracting and exporting oil, then importing gasoline. When the current administration took office, the Tula refinery was “practically at a standstill.”
The rehabilitation of Mexico’s six existing refineries, the purchase of the Deer Park refinery, and the construction of the Olmeca refinery in Tabasco have collectively boosted refining capacity, with the goal of eliminating gasoline imports and producing all of Mexico’s fuel needs domestically. “Today we are producing practically 80 percent of what we consume; in 2018 it was 30 percent,” she said.
She contrasted this progress with the period between 2006 and 2018, during which Pemex was heavily indebted while oil production and refining capacity declined amid corruption scandals. The increased refining capacity represents a reversal of that trend.
Addressing concerns about climate change and the future of fossil fuels, Sheinbaum Pardo stated that the government’s vision is to maximize production alongside the development of renewable energy sources. This approach seeks to balance energy needs with environmental considerations.
The administration also aims to reduce its reliance on natural gas imports, currently sourced 90% from Texas. This goal is part of a broader effort to enhance Mexico’s energy security and reduce its dependence on foreign suppliers.
