Juárez: Drug Gangs Expanding Business Model to Include Huachicoleo Markets

Capitalizing on strong competitive advantages, flourishing distribution systems throughout the city, and healthy cash flows, drug gangs in Cd. Juárez appear to be expanding into the lucrative huachicoleo (stolen gasoline) market.

State prosecutor César Augusto Peniche told Diario (click here), "(we) believe (drug-related) criminal organizations have extended their reach into this illegal practice (huachicoleo), and they are competing with each other for the distribution (of gasoline stolen from Pemex) through their networks in the city."

With an estimated 6000 picaderos (retail outlets for drugs) in the Greater Juárez area, split between several rival gangs, it would seem relatively inexpensive and easy for distributors to accommodate the sale of a couple of gallons of gasoline along with a dose or two of dope for the existing and rapidly expanding client base.

According to Peniche, thus far the perforations into existing gasoline pipelines is concentrated in the area between Km. 20 and the edge of the urban  beltway, especially in Col Granjas Polo Gamboa, South of the Airport on the El Porvenir highway, close to the Storage and Distribution facilities of Pemex.

In his remarks Peniche did not specify whether he believed the drug organizations would integrate the actual clandestine perforation of existing pipelines into a single integrated process from perforation and extraction of gasoline to distribution throughout the city using existing networks that are currently distributing heroin, crystal meth, cocaine, and other substances.