Officials in western Mexico say thieves tapped into a fuel line causing gasoline to spray several kilometers into the air, forcing the evacuation of thousands of people.
Authorities from the state-owned Pemex oil company say no one was injured in Wednesday's incident near the town of Guadalajara.
Officials say emergency crews were able to contain the gas.
"The situation now is that they're sealing it. Mexican Petroleum is here, there are pipes to extract the gasolin that was segmented at a specific point and now what is happening is remediation work. There are personnel from the Attorney General who are carrying out expert work and will raise a report for the investigation and establish [those] responsible," said State Interior Minister Arturo Zamora-Jalisco.
Pemex says illegal taps drilled into pipelines is an ongoing problem, amounting to large financial losses.
Pemex also announced Wednesday that dozens of employees and contractors had been arrested on the suspicion of stealing fuel in neighboring Guanajuato state.