Exhibit 12.1

VALERO L.P.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands, except ratio)

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