Mexico president rebuked top officials this summer over sliding Pemex output, sources say

• Pemex diesel production fell 11% and gasoline output dropped 13% in Q2 versus Q1, while diesel imports surged 134% and gasoline imports rose 45%, with import costs reaching $4.55 billion for gasoline and $1.51 billion for diesel
• No Pemex refinery is operating at designed capacity; the Minatitlán refinery converted just 39% of petroleum into higher-value products in July versus its 75% design rate, while the flagship $21 billion Olmeca refinery has experienced recurring electrical failures and fires
• Sheinbaum's 2027 budget proposal slashed funding for Pemex debt payments based on expectations the company will no longer need support, even as sources identify structural problems including political interference, eroded safety protocols, equipment shortages, and inadequate maintenance funding

Summary

Mexican President Claudia Sheinbaum sharply rebuked top energy and finance officials in late July over deteriorating performance at state oil company Pemex, according to four sources familiar with the meeting. The president, who had promoted Mexico's "energy sovereignty" agenda, felt misled about the company's progress toward fuel self-sufficiency.

Key Performance Metrics:

Second-quarter data revealed severe setbacks:

• Diesel production fell 11%; gasoline output dropped 13%
• Diesel imports surged 134%; gasoline imports rose 45%
• In value terms, gasoline imports jumped 122% to $4.55 billion
• Diesel imports climbed 273% to $1.51 billion

Safety Concerns:

Twelve refinery accidents in 2026 killed six workers and injured 10 others. The $21 billion Olmeca refinery—former President López Obrador's flagship project—has suffered recurring electrical failures and fires, including a March incident that killed five people.

Operational Challenges:

No Mexican refinery operates at designed capacity. The Minatitlán refinery achieved only a 39% conversion rate in July versus its 75% design capacity. Olmeca reached 74% against an 88% target but has fallen as low as 41.5% this year.

Structural Issues:

Sources cite political interference, eroded safety protocols, inadequately trained personnel, equipment shortages, and poor maintenance as underlying problems. Despite billions in government support through debt relief, tax breaks, and financing, production remains stagnant.

Sheinbaum's 2027 budget proposal notably slashed Pemex debt payment funding, suggesting expectations the company will soon operate independently—a projection analysts view skeptically given persistent operational failures.