Ecuador loses $215M to fuel theft tied to drug trade

Ecuador's state-run oil company Petroecuador has reported substantial losses of $215.1 million from fuel theft between 2022 and October 2024, highlighting an escalating crisis tied to drug trafficking operations. The number of illegal pipeline taps has dramatically increased from 32 in 2022 to 773 in October 2024.

Colonel Hugo Amores, Head of the Hydrocarbon Crimes Unit, reports approximately 30,000 gallons of fuel are stolen daily, primarily in the northern border provinces of Sucumbíos, Esmeraldas, and Carchi. The stolen fuel is predominantly used in drug processing operations, creating a concerning link between fuel theft and narcotics trafficking.

The country's 1,655-kilometer network of state-controlled fuel pipelines has become increasingly vulnerable to criminal activities. In one striking example, nine illegal taps were discovered within a 25-meter section of the Esmeraldas-Santo Domingo pipeline, with 136 taps found on this 166-kilometer stretch alone, resulting in $17 million in losses.

While the theft represents a small portion of Petroecuador's $7.5 billion contribution to national income, the situation reflects Ecuador's broader struggle with organized crime. The country has experienced a sharp rise in violence since 2019, illustrated by high-profile incidents including the assassination of a presidential candidate and an armed gang's invasion of a television studio.

Law enforcement officials and experts, including Renato Rivera from the Ecuadorian Observatory of Organized Crime, criticize the current legal framework as insufficient, noting that enforcement focuses too heavily on low-level transporters rather than targeting criminal organizations.