A Mexican government agency complained recently that fuel smuggling in the country has more than doubled since 2018 and now accounts for a fifth of the fuel consumed in the country. The agency also said that one of the main avenues for evading import duties on fuels is to label fuels as base oils or to import base oils and to use them as fuel.
Estimates on the amount of smuggling come from the federal Tax Administration Service and are based on comparisons between fuel consumption estimates and the amount of revenue collected from taxes on gasoline and diesel. SAT officials said recently that the amount of untaxed fuel reached 102 million barrels in 2021, up from 45.8 million barrels in 2018, according to numerous local news reports.
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