Exhibit 12.1

VALERO L.P.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands, except ratio)

		Three Months Ended March 31, 2004				Years Ended December 31,
						2003				2002				2001				2000			1999
Earnings:
Income from continuing operations before provision for income taxes and income from equity investees		$	19,417			$	67,177			$	52,350			$	42,694			$	35,968		$	65,445
Add:
Fixed charges			5,291				16,443				5,492				4,203				5,266			997
Amortization of capitalized interest			14				55				48				39				34			32
Distributions from Skelly-Belvieu Pipeline Company			688				2,803				3,590				2,874				4,658			4,238
Less: Interest capitalized			(17	)			(123	)			(255	)			(298	)			—			(115	)
Total earnings		$	25,393			$	86,355			$	61,225			$	49,512			$	45,926		$	70,597
Fixed charges:
Interest expense (1)		$	5,078			$	15,291			$	4,968			$	3,721			$	5,181		$	777
Amortization of debt issuance costs			100				740				160				90				—			—
Interest capitalized			17				123				255				298				—			115
Rental expense interest factor (2)			96				289				109				94				85			105
Total fixed charges		$	5,291			$	16,443			$	5,492			$	4,203			$	5,266		$	997
Ratio of earnings to fixed charges			4.8x				5.3x				11.1x				11.8x				8.7x			70.8x

⁽¹⁾ The interest expense, net reported in Valero L.P.’s consolidated statements of income for the three months ended March 31, 2004 and the years ended December 31, 2003 and 2002 includes interest income of $52,000, $171,000 and $248,000, respectively.

⁽²⁾ The interest portion of rental expense represents one-third of rents, which is deemed representative of the interest portion of rental expense.