Texas police say cartels make huge money by smuggling fuel into Mexico. Some agents now think this fuel plan makes more cash than drugs.

Col. Freeman Martin runs the Texas Department of Public Safety. He spoke to Texas senators on August 14, 2026. He said fuel smuggling could be worth $12 billion to $21 billion each year. He said some agents on these cases now rank fuel as the top way cartels make money.

"In some recent cases without federal partners, some of them that are actually working these cases believe that it's the No. 1, that it's exceeded their narcotics trafficking," Martin said.

This story matters to border families. It shows cartels found a new way to make cash. It also means more illegal trucks on Texas roads. Those trucks can hurt other drivers. They can also break roads that families use every day.

Martin said cartels used to hide drugs in trucks full of fruit or car parts. Now they use fuel trucks instead.

"Rather than loading drugs into produce, furniture and auto parts, they're loading fuel trucks, box trucks, propane trucks or any container that you can think of and hauling it south," Martin said.

Here is how the plan works. This is what Martin told senators. Trucks cross into Texas empty. They fill up with fuel that has no tax paid yet. The trucks should then follow one set route. Instead, drivers take the fuel somewhere else. Workers mix the fuel with other liquids. This makes more fuel to sell. The stretched fuel then sells in Mexico. It sells for two to three times the U.S. price.

Drivers also change or fake the paperwork. This paperwork should show where the fuel goes. It should also show taxes got paid.

Other DPS officers spoke at the same hearing. Maj. Tim Murphy and Maj. Omar Villareal gave more details. They said troopers caught trucks with 125,000 to 150,000 pounds of fuel. Normal farm trucks can only carry about 90,000 pounds. The extra weight breaks Texas roads. It leaves potholes that cost tax money to fix.

Fuel spills are another problem. Officers said leaks from these trucks have hurt farmland near smuggling routes.

The hearing also talked about the drivers. Officials said drivers get paid small amounts for each trip. One officer said cartels see drivers as easy to replace.

"They're expendable. You know, if we knock off two or three out of ten," the officer said. This means cartels do not mind losing a few drivers or trucks.

Officials also said fuel money does not stay apart from other crimes. They believe cartels use it to clean cash from drug sales. They also use it to clean cash from smuggling people over the border. One official said police often miss the bigger picture.

"We're dealing with it as if it's a traffic issue, and it's really organized," the official said. This means cops often treat these trucks like normal traffic stops. But it is really organized crime.

Right now, Texas senators are looking at ways to stop this smuggling. They heard this at a Senate hearing. That hearing looks at border and safety issues in Texas. No new state law has passed yet.

This smuggling trend touches border towns across South Texas. Trucks and trade cross here every day between the U.S. and Mexico. Families along the border already deal with heavy truck traffic. Bad roads and fuel spills could make life harder here too.

For now, DPS leaders say they will keep watching these routes. They want more help to stop the smuggling. Texas lawmakers may vote on new rules later to fight this problem.