Pemex Diesel Fuel Update

[Ed_White]

There is some important new information to share regarding the availability of ULSD (Ultra Low Sulfur Diesel) in Mexico.

Over the past month (February 2017) I kept pestering a half dozen public relations people at Pemex until one of them finally replied. He sent me 176 pages of information, listing every Pemex station, by number, that carries ULSD. He also sent me a Spanish copy of the latest legislation on this subject.

The Mexican Government has at last placed a date on 100% conversion to ULSD. By December 31, 2018 every Pemex station in Mexico must be carrying ULSD.

There are other things happening too. It looks like 3 of Mexico's refineries are now producing ULSD, and a fourth should be on line later this year.

In addition, Pemex has been required, since 2016, to ensure that ULSD is available at Pemex stations along all of the major transportation routes used by truckers. This means, for example, that the Pemex stations on the main highway passing through places like Mazatlan, or Puerto Vallarta, or Guadalajara must carry ULSD, while the Pemex stations in downtown areas, or away from the highway, may still be carrying Mexican LSD.

This is a very exciting development, because it means that owners of late model diesels can now be fairly confident that ULSD is being carried at all Pemex stations along major routes.

Also, I am happy to look up specific Pemex station numbers on my Master List to see whether a particular station is designated as an ULSD station. (I would release the list publicly but I am not sure that I am authorised to release it publicly).

As always, I am happy to act as a resource for owners of late model diesels. Contact me by email at whitetmp@aol.com

[fulltimedaniel]

moisheh wrote:
Pemex franchise holders are notorious for being cheaters. These are the people that can fit 2.2 gallons in a 2 gallon container. They also can change the relationship between the $ and litres pumped . Some owners buy contaminated fuel. Selling Premium that is Magna is also not unusual. But really who cares if one poster is skeptical.

Moisheh

Again I find I am skeptical of much of this:

First of all the new electronic pumps cannot be changed for purposes of charging more for less. Most stations I have seen are using new pay at the pump models or at least the very new electronic ones.

Second the only way to mix any two fuels would be to dump the wrong fuel into the wrong tank. It happens even here in the states. But it is very rare. The drivers job would certainly be at risk for such a thing.

Third there is an electronic system that keeps track of the tanks and that system is part of the dispensing and payment system. Your average Gas station person only knows enough to read that system and pull a copy from it certainly not to hack it.

Now the above is aimed at the newer more modern stations (which are virtually everywhere now)If you choose to buy fuel from a drum or a one pump station that is 50 years old you may not get what you pay for. But those are fast disappearing.

Again post some links to third party reports from reputable sources on your contentions. ANYTHING is POSSIBLE But the Probable is another matter.

[Ed_White]

Looks like that station owner has decided to convert the station to a different brand. Gulf Mexico is opening stations and converting Pemex stations across Mexico at this time, and is supplying those stations with ULSD from the USA. If stations are advertising UBA then that is a VERY positive move but I suspect it also means that the particular station is in the process of cutting ties with Pemex. Near to us, in la Paz, I've seen three stations that have abandoned Pemex and have taken a different name (sorry, I've forgotten what it is) and are offering discounts on the fuel. Pemex has opened stations in Texas recently - major changes in the industry. Bottom line, these developments are hastening the introduction of ULSD. Good news, thank you.

[Mountaineer42]

Ed White wrote:
It is Pemex policy that NO station will advertise UBA until EVERY station in Mexico has UBA.

That may be Pemex's policy BUT, as I posted last week, at least one station is currently advertising that they are selling DUBA (ULSD). Pemex station advertising DUBA (ULSD)

Maybe they didn't get a copy of the rules???

[Ed_White]

It is Pemex policy that NO station will advertise UBA until EVERY station in Mexico has UBA. It reminds me of my early days in New Zealand (1970s), when it was still a socialist country, with Government fingers in every pie. During modernization of the phone system they wouldn't let anyone have call forwarding or call display until it was available everywhere in NZ. Everyone had to be equal - all it did was deprive people of a higher standard of living.

[Tequila]

moisheh wrote:
Tequila: Do any of the stations have signs that they sell ULSD? Last week we passed at least 8 of the stations that are listed. None had any signs.

Moisheh

probably not, the list came from Pemex head office, its unlikely individual stations know what they are selling, or even care.

[qtla9111]

This thread is really starting to hack me off.

[moisheh]

Pemex franchise holders are notorious for being cheaters. These are the people that can fit 2.2 gallons in a 2 gallon container. They also can change the relationship between the $ and litres pumped . Some owners buy contaminated fuel. Selling Premium that is Magna is also not unusual. But really who cares if one poster is skeptical.

Moisheh

[fulltimedaniel]

MEXICOWANDERER wrote:
The country is outpacing the production of domestic diesel. Extremely Low Sulfur Diesel Diesel is being purchased from Japan

Sakai Refinery Cosmo Oil

Toyama Refinery Nihonkai Oil/(Nippon Oil Corporation) NOC

But it helps to keep in mind common sense logistics. Mexico City gets first dibs on major production.

Tank farm tanks are labelled. See if you can spot a tank labelled DIESEL UBA

Distributors are under contract to PEMEX and have closely monitored and protected sales territories. When a distributor fills at an Almacen de Pemex (tank farm) every station in his area will get the same fuel. The Almacen de Pemex at El Sauzal B.C. for instance serves every gasolinera, in Baja California. The Almacen at Mexicali is connected via pipeline.

So looking at a distribution map, and seeing splotchy coverage of UBA in a distributor's area, does not make sense. At all. Every gasolinera will get the same available fuel from the Almacen.

Mexico City consumes a titanic quantity of diesel. A large percentage of refinacion capacity of Villahermosa, and Queretaro is piped to DF. Same for ship ports, but here's the catch.......Atlantic ports are not viable for fuel originating in Japan. El Sauzal is a tiny Almacen. Salina Cruz, Manzanillo, Lazaro Cardenas and Puerto Vallarta are magnitudes greater in volume.

Ed White has an email pipeline map showing distribution via pipeline. I suggest reading it to gain a better understanding of the distribution web throughout the country.

Pemex is trying to quash dilution of grades of "comistible". But as long as servivios particulares are used to distribute fuel there exists a real risk that fuel will not be what it is claimed to be. The only surety for UBA will be to eliminate the availability of regular low sulfur diesel.

When the price of UBA Premium and Magna was but a few cents (US) difference, there was less of a chance of deliberate dilution. But today the price spread makes it a lucrative practice. A "pipa", truck and trailer tanker can transport twelve thousand gallons of fuel. At fifteen cents per gallon differential you can do your own math. All fuel dump-ages are PRE-PAID via electronic funds transfer from gasolinera to distributor then from distributor to PEMEX. Bank to bank.

Can you post here ANY third party links to substantiate these claims you make?

I find many of them, especially about the distribution, sale and dilution to be dubious at best.

I am not saying they may not be based in some truth somewhere but I am skeptical of many of your claims.

[briansue]

The pictures posted at the beginning of the thread show they use DUBA instead of ULSD - I guess that would be what to look for.

[moisheh]

Tequila: Do any of the stations have signs that they sell ULSD? Last week we passed at least 8 of the stations that are listed. None had any signs.

Moisheh

[Ed_White]

Based on my data collection over 9 years, Class A Diesel pushers NEVER experience any issues with the sulfur in Mexican LSD. This is because of two things - (a) The vehicles are heavy, so the engine is always working hard, which keeps exhaust gas temperatures high enough to prevent sulfur compounds from settling out in the SCR, and (b) Their exhaust systems are comparatively short, so the exhaust system heats up quickly and stays hot over it's entire length.

[Tequila]

checking afew at random, it seems that you could manage if you have class a with a lot of range or carried 2 or 3 - 5 gallon jerry cans if you have a pickup to bridge the gaps or mix 1/2 & 1/2. it seems as if Chiapas & Villahermosa may be an issue

[Tequila]

Ed just gave me permission. I have put the list on a website along with another link I found showing where Pemex stations are located on a map. You can download the excel file with the list. With these links you can x-reference. I have put it all at THIS LINK

[Tequila]

Ed White wrote:
Tequila, I'm not comfortable yet with the idea that the list I provided to you should be published. I received the list from a Pemex employee and I don't have permission to make the list public. By all means respond to questions about individual stations, and share knowledge you may extract related to a specific route, but please do not publish the list as provided.

I wont