LP Gas Cartel

The Invisible Hand Choking the Market

If you thought Mexico’s fuel market was just another capitalist playground, think again. Behind the gas trucks and distribution centers lies a sinister network of corporate greed, cartel infiltration, and political corruption—a cartel not in name, but in every conceivable practice.

The recent LP gas retailers’ strike was more than a protest against government price caps—it was a thinly veiled power play by the LP gas cartel, a conglomerate of five business groups controlling 60% of the country’s gas supply. The so-called strike wasn’t about defending small business owners—it was economic blackmail, a desperate attempt by corporate giants to preserve their monopoly and price-gouging privileges.

But here’s the kicker: the protest was a farce. It barely caused any disruption, no mass shortages, no long queues—just mainstream media hysteria, perhaps fueled by the very corporations pulling the strings. The real goal? To destabilize López Obrador’s administration and frighten consumers into opposing fuel regulations.

Yet, despite their shady maneuvers, the LP gas cartel’s grip is finally being exposed. And they don’t like it one bit.

The Gas Cartel’s Monopoly: A Nation Held Hostage

Let’s get one thing clear: Mexico’s gas industry is not a free market. It is controlled by a cartel of five corporations, each with monopolistic control over specific regions, creating a chokehold on the country’s energy supply.

Here’s the rogues’ gallery of gas barons:

• Grupo Tomza – Owned by Tomás Zaragoza Fuentes, it reigns over the northwest of Mexico.

• Zeta Gas – Run by Miguel Zaragoza Fuentes (yes, another Zaragoza), it dominates Nayarit, Jalisco, and Michoacán.

• Gas Uribe – Controlled by Óscar Uribe, this company handles distribution in the Valley of Mexico.

• Vela Gas – Owned by Lázaro Bello, it shares territory with Gas Uribe, creating a duopoly in central Mexico.

• Gas Express Nieto – The empire of Sergio Nieto del Río, covering Guerrero, Jalisco, Veracruz, Querétaro, Guanajuato, and parts of Mexico City.

These companies aren’t just in the business of gas—they’re in the business of power. Through price-fixing, bribery, and political patronage, they’ve maintained their stranglehold on the market for decades.

And they’re not afraid to play dirty.

Corruption and Blood Money: The Cartel’s Dirty Laundry

Behind the cartel’s corporate façade lies a cesspool of corruption, criminal ties, and even blood on their hands.

Let’s start with the Zaragoza brothers.

• These “respectable businessmen” were financial backers of former President Vicente Fox Quesada, whose campaign was tainted by scandal and allegations of illicit funding.

• They later supported Felipe Calderón, another controversial president, creating deep political ties that granted them immunity from antitrust investigations.

• Their political protection allowed them to fix prices with impunity, gouging Mexican consumers for years.

Then there’s Sergio Nieto del Río, whose Gas Express Nieto company was responsible for one of Mexico’s deadliest gas explosions.

• In 2015, a poorly maintained gas tank exploded, destroying the Cuajimalpa Children’s Hospital and killing four people, including infants.

• Despite official reports confirming negligence and lack of maintenance, Nieto’s company evaded serious penalties.

• His alleged ties to former Pemex director Emilio Lozoya, who is currently on trial for corruption, paint a damning picture of collusion between the fuel mafia and Mexico’s political elite.

And if corporate corruption wasn’t enough, the gas market is also infiltrated by organized crime.

• The Jalisco New Generation Cartel (CJNG), one of the most violent drug cartels in Mexico, is heavily involved in “huachigas” (gas theft).

• These criminal groups tap into Pemex pipelines, stealing gas and selling it at cut-rate prices.

• In states like Jalisco and Guanajuato, cartel-backed distributors dominate local fuel markets, creating violent turf wars over gas routes.

The result?
A lethal cocktail of corporate corruption, political complicity, and organized crime—all disguised behind the façade of a legitimate gas industry.

The Fake Strike: A PR Stunt to Undermine the Government

Now, about that so-called gas strike.

On August 3, 2021, the Gremio Gasero Nacional (National Gas Workers’ Union) staged a coordinated protest, supposedly in response to government-imposed price caps. Their claim?
That the Energy Regulatory Commission’s (CRE) decision to limit LP gas prices would drive them out of business.

But let’s be real—this was no grassroots uprising.

• The strike only affected a few central cities, barely causing any shortages.

• No mass closures, no long queues—just a media blitz orchestrated by corporate PR machines.

• The gas companies used their control over distribution to create a false sense of scarcity, hoping to stoke public outrage.

But it didn’t work.

• President López Obrador called their bluff—deploying the National Guard to prevent blockades and vowing to punish the ringleaders.

• Within hours, the strike evaporated, leaving the cartel exposed and humiliated.

So, why the theatrics?
Because the cartel is terrified of López Obrador’s plan to regulate the gas market and introduce Gas Bienestar, a state-owned fuel company offering low-cost gas to consumers.

Gas Bienestar is the cartel’s worst nightmare:

• Fair competition that cuts into their monopolistic profits.

• Direct government oversight preventing price-gouging and fraud.

• Criminal investigations into their shady dealings.

Media Manipulation and Censorship: The Cartel’s Dirty Tricks

Unsurprisingly, the LP gas cartel is pulling every trick in the book to censor negative coverage and control the narrative.

Here’s how:

• Flooding traditional media with propaganda, framing López Obrador’s reforms as “authoritarian” and “anti-business.”

• Suppression of investigative journalism, using legal threats and financial influence to silence critical voices.

• Social media manipulation, deploying fake accounts to spread disinformation about the government’s gas policies.

The cartel knows that public opinion is their last defense. If they can convince consumers that López Obrador’s reforms will hurt them, they can keep their monopoly intact.

The Real Victims: Consumers and Small Distributors

While the cartel executives sip champagne in their luxury estates, it’s ordinary Mexicans who suffer.

• Gas prices have skyrocketed, with families spending up to 20% of their income on fuel.

• Small distributors—the so-called commission agents—are squeezed out of the market by predatory pricing.

• Cartel-backed distributors collaborate with criminal groups, exposing local communities to violence and extortion.

Meanwhile, López Obrador’s reforms offer a glimmer of hope.

• Gas Bienestar aims to break the cartel’s grip by offering affordable gas directly to consumers.

• State intervention is the only way to dismantle the cartel’s monopolistic practices.

Conclusion: The Gas Cartel’s Days Are Numbered

The LP gas cartel has operated with impunity for years, price-gouging consumers, manipulating governments, and crushing competition. But its reign of terror is finally under threat.

The failed strike was a sign of desperation—an attempt to intimidate the government and scare consumers. It didn’t work.

Now, with Gas Bienestar looming, the cartel is fighting for survival.

• Censorship campaigns won’t protect them.

• Media manipulation won’t save them.

• And corporate money can’t outmatch the government’s resolve.