EXHIBIT 12.1
VALERO L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIO)
<Table>
<Caption>
YEARS ENDED DECEMBER 31,
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2002 2001 2000 1999 1998
---- ---- ---- ---- ----
Earnings:
Income from continuing operations
before provision for income taxes and
income from equity investees $ 52,350 $ 42,694 $ 35,968 $ 65,445 $ 54,910
Add:
Fixed charges 5,492 4,203 5,266 997 1,001
Amortization of capitalized
interest 48 39 34 32 28
Distributions from Skelly-Belvieu
Pipeline Company 3,590 2,874 4,658 4,238 3,692
Less: Interest capitalized (255) (298) - (115) (121)
-------- -------- -------- -------- ---------
Total earnings $ 61,225 $ 49,512 $ 45,926 $ 70,597 $ 59,510
======== ======== ======== ======== ========
Fixed charges:
Interest expense (1) $ 4,968 $ 3,721 $ 5,181 $ 777 $ 796
Amortization of debt issuance costs 160 90 - - -
Interest capitalized 255 298 - 115 121
Rental expense interest factor (2) 109 94 85 105 84
-------- -------- -------- -------- ---------
Total fixed charges $ 5,492 $ 4,203 $ 5,266 $ 997 $ 1,001
======= ======= ======= ====== =======
Ratio of earnings to fixed charges 11.2 x 11.8x 8.7x 70.8x 59.5x
======== ======== ======== ======== ========
</Table>
(1) The interest expense, net reported in the Partnership's consolidated
statements of income for the years ended December 31, 2002 and 2001 includes
interest income of $248,000 and $69,000, respectively.
(2) The interest portion of rental expense represents one-third of rents, which
is deemed representative of the interest portion of rental expense.