Trafigura Resumes Business in Mexico After Smuggling Accusations
Trafigura Resumes Mexico Business Dealings After AMLO Accusation
(Bloomberg) -- Trafigura Group resumed its operations in Mexico after accusations of fuel smuggling by Mexican President Andres Manuel Lopez Obrador caused some firms in the country to suspend dealings with the commodities trader.
Lopez Obrador’s October claim that Trafigura transported contraband fuel caused some of the firm’s partners and clients including mining conglomerate Grupo Mexico to temporarily curtail business while awaiting clarity, said a person familiar with the situation. Grupo Mexico and many other firms have since resumed business, said the person, who asked not to be identified because the information isn’t public.
Representatives from Trafigura and Grupo Mexico declined to comment.
Private companies in the fuel market are facing more stringent measures under the government of Lopez Obrador, who is pursuing a sector-wide crackdown that includes delays in awarding gasoline and diesel import permits, and the suspension or cancellation of privately owned fuel storage facilities and terminals.
Trafigura had five permits in Mexico for gasoline, diesel and jet fuel revoked or not renewed in September, about three weeks before AMLO -- as the president is known -- said Trafigura’s fuel-import contracts had been suspended because it allegedly transported contraband fuel. The company has denied the allegations.
©2022 Bloomberg L.P.