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Fuel shortage in Mexico has detonated an increase in ethanol sales in the black market . Just like stolen fuel, ethanol is sold in plastic drums, cylinders, and mixtures made directly in the fuel tanks of motor vehicles, small shops, fake gas stations, and clandestine establishments .
The situation is becoming critical, according to high level officials of the country’s energy sector, who explained that, due to a lack of fuel in central Mexico, the number of ethanol sales outlets has significantly increased. The sale of ethanol is strictly regulated in the country and most of these sales points are operating illegally.
According to official sources, the criminal groups that control said market are encouraging users to use ethanol blends of up to 50% in their transport units , though the NOM-016 regulation sets the limit at 10% .
In regard to oxygenating substances, the regulation bans the use of ethanol at commercial gas stations in Mexico City, Guadalajara, and Monterrey , due to the high levels of pollution it generates.
As for the rest of the country, the use of ethanol is limited to 10% of the total volume of gasoline, since it is likely to damage motor vehicles.
However, there are corporate groups that incur in the sale of ethanol. Such is the case of Báltico which, through its subsidiary Oxifuel , operates 100 gas stations and sells 1-gallon (5L) drums of ethanol for MXN$85 each , which is equivalent to 17 pesos per liter , approximately.
Some other groups such as Flex Fuel advertize dozens of sales points, though there has been a proliferation of small shops that sell tanks, drums, and cylinders of ethanol.
“Many of these gas stations currently operate in all three cities in which the NOM-016 has banned the sale of ethanol-gas mixtures,” claimed the statesmen, who wished to remain anonymous.
In practice, they added, the limits set on the use of ethanol by the Energy Regulating Commission have become “irrelevant, considering the alarming growth of the underground ethanol trade industry.”
In recent days, Mexican authorities have conducted civil protection operatives in states that have been most affected by fuel shortage such as Jalisco, Tabasco, Guanajuato, the State of Mexico, and Mexico City , as well as other regions that have alerted of an increase in illegal ethanol sales.
In most cases, “authorities have noticed violations of civil protection regulations,” they said. A recent study on the use of ethanol shows that, even within the 10% limit, it could result in vehicle damage.
In their guidelines, the Energy Regulating Commission established that the number of vehicles that could be damaged by ethanol mixtures limited to said percentage could rise to 16.83 million units , more than half of Mexico’s total vehicle pool.
Damages caused by ethanol use may cost more than MXN$2,700 per vehicle , according to official data.
Environmental impact
Environmental authorities have indicated that ethanol-gasoline mixtures generate more pollution than regular gas.
The National Ecology and Climate Change Institute (INECC), as well as the Mexican Oil Institute (IMP), the Ministry of Natural Resources and the Environment (SEMARNAT), the Mexico City Environment Ministry (SEDEMA), and the Jalisco Environment and Territorial Development Ministry (SEMADET) have warned against the use of ethanol-gas mixes. Due to their high volatility, they are likely to increase volatile organic compounds emissions.
According to SENER’s official website, as of 2018, eight permits were granted for the production of bioenergy products, seven of which were for ethanol, while 21 out of 44 bioenergy marketing authorizations were for ethanol products. Out of seven transport permits, five were for ethanol as well.
The Mexican Association for Sustainable Mobility explained that vehicle user manuals in Mexico are starting to warn against the use of ethanol as well.
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