Welcome to The Mexpatriate.
The week began with headlines about high-profile fuel theft arrests and picking apart the government’s 2026 budget, but then a fatal accident on Wednesday captured the national conversation. A tanker truck carrying LP gas overturned under a highway overpass in the Iztapalapa borough of Mexico City and exploded. As of writing, 10 people have died and 54 are still hospitalized; and as happens when tragedy strikes, there have been many viral videos of horror, but also, of heroism.
According to municipal authorities, speeding was likely to blame for the accident (the driver is in critical condition). The company that owns the truck issued a statement saying their insurance is up to date (after initial reports that it wasn’t), and they will take responsibility for damages. However, the accident has brought up the issue of inadequately regulated last mile distribution of LP gas, which is used in 80% of Mexico’s households and is a US $9 billion-a-year business.
Meanwhile, Sheinbaum—who is rehearsing for her first presidential “Grito de Independencia” on Monday night—continues the deficit dance with the 2026 budget, predicting it will hold at 3.6% of GDP next year (down from 4.9% last year). To increase revenue, Sheinbaum is banking on the ongoing crackdown on tax evasion loopholes and some Trumponomics a la mexicana. Her administration is proposing an increase of tariffs on Asian car imports, which Chinese officials claimed is evidence of U.S. “coercion.” Sheinbaum has insisted that “we have a very good relationship with China,” but that the tariffs are necessary to protect domestic industry. Mexico’s trade deficit with China reached a record US $57.5 billion in the first half of 2025.
In today’s letter, I cover the widening fuel smuggling corruption scandal, controversial evictions in Mexico City, a newly minted Mexican “unicorn,” plus a new sin tax, a 100% Mexican airplane and the semifinals of México Canta in the Odds and Ends section.
Pandora’s boats?
The arrest of 14 suspected operators of a fuel smuggling network has turned into a conflagration for the Mexican navy this week.