Cartels Profiting from Fuel Smuggling

Mexican authorities have arrested Ernesto Ruffo, former governor of Baja California, on suspicion of involvement in a large-scale fuel smuggling scheme known as huachicol fiscal, which is linked to organized crime and cartel revenues. The scheme involves evading taxes by mislabeling and smuggling legally purchased fuel from the United States into Mexico, with estimates suggesting that up to a quarter of all fuel sold in Mexico may be illicit. The investigation has uncovered widespread corruption involving customs officials, military personnel, and freight operators, and has led to the seizure of millions of gallons of contraband fuel. Ruffo denies the charges, claiming he is a victim of political persecution.

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