U.S. Senator Ron Wyden has asked seven leading tanker companies to detail their vetting and due-diligence practices to ensure vessels are not used to carry cartel-linked illicit fuel. The move follows a Reuters investigation and Treasury findings that stolen crude and bootleg fuel are now the cartels' second-largest revenue source. Wyden requested responses by Jan. 10, 2026, and warned that cutting off this income is key to disrupting broader cartel activity. Reuters identified Torm as manager of two vessels allegedly tied to smuggling; several firms say they follow compliance procedures.
Senator Wyden Probes Seven Tanker Firms Over Cartel-Linked Fuel Smuggling
FILE PHOTO: U.S. Senator Ron Wyden (D-OR) speaks at a press conference following the Democratic weekly policy lunch on Capitol Hill in Washington, D.C., U.S., December 9, 2025. REUTERS/Annabelle Gordon/File Photo
U.S. Senator Ron Wyden has sent formal letters to seven major oil tanker companies asking for detailed information about the vetting and due-diligence procedures they use to prevent their vessels from carrying cartel-linked illicit fuel, according to correspondence reviewed by Reuters.
Why The Inquiry Matters
Wyden, the senior Democratic member of the Senate Finance Committee, opened the probe after Treasury Department findings and a Reuters investigation showed that stolen crude and bootleg fuel have become the second-largest revenue source for Mexican cartels. The senator said he wants to understand how the criminal networks operate and where existing safeguards are failing.
What Wyden Asked For
The letters—dated Friday and delivered to Torm, International Seaways, Norden, CMB.Tech, Frontline, Teekay and Scorpio—request detailed responses by Jan. 10, 2026. Wyden asked each company to explain the due diligence they perform "to ensure its oil tankers are not utilized to transport illicit fuel," including customer screening, voyage monitoring, and compliance procedures.
"I want to be sure both shipping companies and the U.S. government are doing everything in their power to shut off this revenue stream," Wyden wrote.
How The Smuggling Scheme Works
Investigators say cartels have exploited loopholes in North America's energy logistics—moving petroleum by truck, rail and increasingly by tanker—often using a mix of legitimate industry participants, sometimes unknowingly. Central to the scheme is evading Mexico's IEPS fuel tax, which is charged per liter and can exceed 50% of a shipment's value. Smugglers reportedly mislabel imported diesel and gasoline as other, tax-exempt petroleum products, which can translate into millions of dollars in tax savings per tanker load.
Companies And Responses
None of the seven firms has been charged with wrongdoing. Reuters' Oct. 22 investigation identified Torm as the manager of two vessels allegedly used in smuggling earlier this year. CMB.Tech said it follows know-your-customer standards and applicable regulations and will respond to Wyden. Norden confirmed receipt and said its sea carriage operations comply with the law. The other companies did not immediately comment to Reuters.
Scale And Security Implications
Mexican and U.S. security sources said the Jalisco New Generation Cartel is the primary cartel using tankers. Multiple sources told Reuters that bootleg fuel may now account for as much as one-third of Mexico's diesel and gasoline market, and that illegal fuel entering the country could be valued at more than $20 billion a year. Wyden warned that cracking down on illicit fuel smuggling is essential to disrupting cartel finances that fund drug trafficking and other violent crimes.
Reporting: Stephen Eisenhammer in Mexico City and Shariq Khan in New York. Editing: Marla Dickerson.
