EXHIBIT 12.1
VALERO L.P.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIO)
<Table>
<Caption>
THREE MONTHS
ENDED YEARS ENDED DECEMBER 31,
MARCH 31, -------------------------------------------
2003 2002 2001 2000 1999 1998
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Earnings:
Income from continuing operations
before provision for income taxes
and income from equity investees $ 11,651 $ 52,350 $ 42,694 $ 35,968 $ 65,445 $ 54,910
Add:
Fixed charges 2,520 5,492 4,203 5,266 997 1,001
Amortization of capitalized
interest 13 48 39 34 32 28
Distributions from Skelly-Belvieu
Pipeline Company 748 3,590 2,874 4,658 4,238 3,692
Less: Interest capitalized (62) (255) (298) -- (115) (121)
------------ ------------ ------------ ------------ ------------ ------------
Total earnings $ 14,870 $ 61,225 $ 49,512 $ 45,926 $ 70,597 $ 59,510
============ ============ ============ ============ ============ ============
Fixed charges:
Interest expense (1) $ 2,339 $ 4,968 $ 3,721 $ 5,181 $ 777 $ 796
Amortization of debt issuance
costs 80 160 90 -- -- --
Interest capitalized 62 255 298 -- 115 121
Rental expense interest factor (2) 39 109 94 85 105 84
------------ ------------ ------------ ------------ ------------ ------------
Total fixed charges $ 2,520 $ 5,492 $ 4,203 $ 5,266 $ 997 $ 1,001
============ ============ ============ ============ ============ ============
Ratio of earnings to fixed charges 5.9x 11.2x 11.8x 8.7x 70.8x 59.5x
============ ============ ============ ============ ============ ============
</Table>
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(1) The interest expense, net reported in the Partnership's consolidated
statements of income for the three months ended March 31, 2003 and the year
ended December 31, 2002 includes interest income of $42,000 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.