Pemex's financial crisis deepens with record losses under new leadership

A staggering 478 billion-peso loss reveals Pemex's collapse—bigger than Mexico's education and defense budgets combined. Can the oil giant recover?

, and Administrator

2026 May 17 . 2:12 PM

1 min read

The image shows a graph depicting the population collapse in Mexico over time. The graph is... — The image shows a graph depicting the population collapse in Mexico over time. The graph is accompanied by text that provides further information about the data being presented.

Pemex's financial crisis deepens with record losses under new leadership

Mexico’s state-owned oil company Pemex has reported massive financial losses under its current leadership. Without government intervention, the company’s deficits would have grown even larger by 2025. The figures reveal a deepening crisis with far-reaching economic consequences. Between October 2024 and March 2026, Pemex recorded a net loss of 478 billion pesos. This follows an 18-month period under former director Octavio Romero Oropeza, which left a shortfall of 954 billion pesos. The company’s struggles continued under Víctor Rodríguez Padilla, whose tenure saw losses equal to Mexico’s entire 2025 budget for senior citizen welfare pensions—483 billion pesos.

The financial strain extends beyond Pemex’s own accounts. Its 2025 losses alone surpass the budgets for both the Ministry of Public Education (466 billion pesos) and the Ministry of National Defense (158 billion pesos) by a wide margin. To prevent even greater damage, the government injected around 395 billion pesos in transfers and tax breaks. Without this support, Pemex’s losses would have ballooned to 440 billion pesos in 2025.

Operational performance has been mixed under Rodríguez Padilla. While gasoline production climbed by 42% to 402,000 barrels per day, crude oil output dropped by 8.1% to 1.36 million barrels daily. The company has also lost its investment-grade credit rating from both Fitch and Moody’s, further complicating its financial outlook. Pemex’s financial troubles now rival the budgets of major government programmes. The company’s reliance on state aid highlights its precarious position, with production declines and credit downgrades adding to the pressure. Without significant changes, its losses could continue to weigh heavily on Mexico’s public finances.