Mexico's Cheap Gas Draws American Drivers

SAN DIEGO — If there's pain at the pump in the U.S., Mexico may just have a remedy. A gallon of regular unleaded gasoline in San Diego retails for an average price of $4.61 a gallon. A few miles south, in Tijuana, it's about $2.54 _ even less if you pay in pesos.

More and more people appear to be taking advantage of the lower price.

"I used to buy exclusively in the U.S. before gas started really going up," said Patrick Garcia, a drama teacher at an elementary school in San Diego who lives in Tijuana. "Since then, I've been buying all my gas in Tijuana."

The lower prices mean a U.S. motorist could save almost $54 filling up a two-year-old Ford F150 pickup with a 26-gallon fuel tank in Mexico.

The differential in diesel is even greater, selling at $5.04 a gallon in San Diego County and $2.20 in Tijuana.

Paul Covarrubias, 26, who lives in Chula Vista and works in construction in San Diego, crosses the border each week just to refuel his dual-cab Ford F-250 pickup.

"I fill it up with diesel in Tijuana for $60," he said. "It would be almost twice that in San Diego."

Gas is cheaper in Mexico because of a government subsidy intended to keep inflationary forces in check.

Still, international gas-buying trips don't make sense for everyone. The wait getting back into the U.S. at the border in Tijuana frequently takes longer than two hours and cars can burn about a gallon of gas for each hour they idle.

Comments

[watchingthings]

The reporter of this story says you can burn upto a gallon an hour waiting at the border. Isn't the reporter smart enough to shut his engine off during the two hour waite?

[theplaintrutho1]

It's probably hard to that if the line is slowly moving, plus, they may want to keep the AC going in the heat.

Still in all, two gallons=$5­.08, almost the difference of one gallon in the US.
The more compelling part of the story is the difference between a gallon of diesel is, not only here in the US which drives up the price of everything that has to be delivered, but look at the difference of the price against the Mexican gas. We're talking a $0.34 cent lower price, but here in our country, that crap, which is the least refined and always the cheapest, (originally designed for long-term naval vessels) is the highest here. WHY!

[azureblue]

Want to DOUBLE the fuel supply in the US? End the War. The Dept. of Defense- all the armed forces- consumes more fuel than the US itself.

BTW, this is why diesel is so expensive-

[watchingthings]

end the war and initiate voluntary energy saving ways for the public.

[UnbiasView]

There is nothing voluntary about socialism . . . I mean liberalism.

[Blutus]

Get it while you can.

Pemex bleeds millions a year due to corruption and inefficiency.

Among the worst in the world.

Mexico is not the answer either.

[booksnmore4you]

PEMEX is a Mexican national company - yes, Mexico has a nationalized oil industry that exploits its own oil - it does not give this task to the Exxon-Mobiles of the world. The US had cow when they decided to do this years ago but Mexico put its people, and not oil company profits, first.

Norway does the same thing - its oil industry is national and the government uses the profits to invest mightily in its people. Its budgetary surplus is so large they have the billions sitting in escrow for the next generation.

So now Americans cross the border to by Mexican gas. So now we are a huge debtor nation and our kids a born into debt. So now we've been in bed with Big Oil for generations and now we start to figure that Mexico and Europe may have been on to something after all. They knew that all along, of course.

Go figure. And do go figure American exceptionalism into this equation.

[watchingthings]

All Pemex is.......i­s just like your local fire departmemt­.....maybe your local police....­too bad. in Canada they include healthcare with fire department and police.

[watchTVgetSTUPID]

US based truckers will be driven out of business faster because of this Mexican government subsidy to their truckers crossing the boarder. No doubt every Mexican truck headed North starts out with a full load of subsidized fuel. How can any of our truckers survive such a disadvantage?

[dragginwillie]

Thats right, lets blame the Mexican Government and Mexican truckers.

[watchingthings]

This is not Mexican subsidy...­.this is Corporate America putting everyone in their place. You sir, are a servant...­.and soon the neocons hope to take over and put you in your place.

[watchTVgetSTUPID]

Bottom line is American indpendent truckers paying their own gas are dead meat.
Also, you can expect the other American truckers are going to find their jobs transferred to Mexican based companies where ever possible.

It won't be long before a Mexican truck in the USA gets in an accident with 200 gallons of unsafe add-on gas tanks explode

Also American truckers are forced to buy EPA compliant gas but the NAFTA trucks from Mexico pollute our environment with non compliant gas.

Nobody in DC is looking out for American workers.

[GrouchoMarxist]

"Free trade" at work for you!

Meh

[GrouchoMarxist]

So now all the Republicans in San Diego...wi­th their border fence and all...are hightailing it to Mexico to buy gas because Dear Leader has screwed them at the pump. I wonder if any of them have the self-awareness to notice the irony.

[AnnArky]

"Hey, Wally, why's gas cheaper in Mexico?"
"Gosh, Beave, Dad says it's because of a buncha stuff I don't really understand­."
"Wally, could you try and splain it to me?"
"Well, Beave, I think he said it's because us Americans are basically stupid and will pay anything without questioning it."
Wally, are we stupid Americans?"
"No, Beave. We don't really exist. We're just a figment of someone's imagination. We're what America wanted to be but was too busy hating each other and being greedy and all."
"Wally, you're scarin' me."

[leduck]

wally and beave's father is stupid
he should never have moved to suburnia in the first place

mexico may be paying less for gass right now but they're oil production is crashing
so i wouldn't be so envious of there situation.

[Fentwin]

Their their, they're is know wey to now weather there move to suburbia was a misteak.

[xrepublican]

Wally and the Beave would never pay taxes so others would have SUBSIDIZED gas prices.

SUBSIDIZED - the GOVERNMENT pays the difference between ACTUAL cost and what consumers pay.

[guajiro]

Gee, I don't know, but it looks like Americans are already subsidizing the oil companies.

"Big Oil is already profiting from discounted and subsidized Iraqi crude provided by the U.S. Army Corps of Engineers (USACE) while the population of occupied Iraq lacks the most basic services: security, water and sewage, electricity, and telecommunications.

American consumers and taxpayers are picking up the tab for the reconstruction of Iraq, directly and indirectly, as the congressio­nally-fund­ed USACE is working to increase the flow from Iraqi oilfields.

The abundant oil of southern Iraq is flowing again, thanks largely to the USACE, which was commissioned by the Department of Defense and the secretary of the Army to restore Iraq’s oil production­."

The production costs that pro-corporate hacks whine about is nowhere what they'd have us believe:
"The shattered nation [Iraq] may have the world’s largest reserves of oil,” read the headline of The New Yorker on July 21. The informative article noted that the abundant oil of the Basra area “has the cheapest production costs in the world, at about a dollar a barrel.”


http://www.americanfreepress.net/07_25_03/Plutocrats_Gushing/plutocrats_gushing.html

[watchingthings]

When speculators back off......t­ruth will emerge.

[watchingthings]

You did not ask me.....but­......if I may say.....In Mexico it is not driven by the corruption of Exon and Mobil Oil.

[Blutus]

Mexico: Pemex Oozes Corruption
By Diego Cevallos
MEXICO CITY



"Pemex is a can of worms. If you do something right, they come after you; if you shut up about some irregularity, they reward you; and if you take part in the corruption, you profit," a Pemex worker told IPS.

"I’m not saying everything is like that -- there are also honest people," added the worker, whose name is withheld for his safety.

The employee said that after he replaced several worn-out parts of a gas valve, a group of internal auditors criticised his work, saying they had found "too many foreign parts," and ordered him to put the originals back in place.

He said that when his boss protested, he was accused of a bias in favour of a private supplier and an investigation against him was launched.

The 70-year-old Pemex, the biggest company in Latin America, which employs 154,761 people, 125,523 of whom belong to the powerful oil workers union, is facing severe financial difficulties and is in dire need of upgrading its technology infrastructure. Moreover, Mexico’s proven oil reserves are expected to run out in nine years.

Billions of dollars are lost to corruption which, according to observers, is deeply rooted in an opaque administration choked with red tape, and in political and economic vested interests.

[TxAggie]

Pemex not corrupt> ExxonMobil is? Watchingthings you do a pitiful job of watching.

[vippy]

Again, blame your congress for this mess and the high prices. No one but them created the Enron Loophole with their Commodities Future's Modernization Act. Get educated and blame the right people. Yes, Phil Gramm, remember him? Vote congress out of office and let them know we have had it with their incompetence!

[Wilburrr]

...meanwhi­le, Eddie Haskel is siphoning gas out of the Cleaver's cars....

[ignorantwillyharper]

We can't build a fence, there's more of us going south, than them coming north.

[LOL123]

Funny you should mention this, because that's what I was thinking. The new "WHITE FLIGHT" to Mexico...C­ozimel, Mexico city...ect­. a lot of Europeans have houses there already. Soon there will be signs ...Gringos go home...rem­ember the FENCE (instead of remember the Alamo).

[Fentwin]

What do you think the fence may ultimately be for?

[kyvette68]

Frightening isn't it? My first thought when talk of a wall started was "I think they are trying to keep us here."

[ladyshooter]

The price differential between San Diego and Tijuana will encourage foreign aid to Mexico. In other words, people will go to Tijuana to buy gasoline and diesel, infusing cash into the local economy.

[brooklyncitizen]

'Gas is cheaper in Mexico because of a government subsidy intended to keep inflationary forces in check.'

Gee. Even the Mexican Govt. is more compassionate towards its citizens than the US govt is towards americans.

Coming soon: "THe rise of illegal American immigrants in Mexico; Mexicans in an uproar over Americans taking their jobs"

[Americanium]

I thought under NAFTA the Mexican Govt. cannot provide subsidies. While we are at it, isn't the Iraqi Govt subsidizing gas to their citizens? Aren't we the ones paying for this subsidy?

[Whipsmart13]

"Gee. Even the Mexican Govt. is more compassionate towards its citizens than the US govt is towards americans.­"

Given the amount of disposable income in the U.S. to buy Cell Phones, IPODS, Internet, Plasma TVs, XBoxs, Soft Drinks, Fast Food, Cable TV, why does the US Gov't need to subsidize gas for a citizenry that has bought gas guzzling SUVS, Trucks, and Hummers?

The reason that the Mexican Government has to subsidize the gas is because the gap between the super rich elite and the majority of the citizens that live below the poverty line.

[Erdgeist]

Boy how silly is Mexico. They need speculators like we have in the U.S. to drive up the price of a barrel of oil by 60%. It is free enterprise. And it is wrong, wrong, wrong, to keep inflationary forces in check! Come on Mexico, do it the American way--lots of corruption and speculation!

I mean I am proud to fill up my little car at 50 bucks. The only thing is, I don't shop anymore (I order everything from Amazon on my APPLE computer). The streets in Atlanta are growing empty and the malls are almost empty (except for Apple). Lots of people are being laid-off. But heck, I would rather have guys ripping me off than have the government make gas cheap at the pump. God bless my corrupt America and especially you, Generalissimo Arbusto.

[Crozier]

KUDOS - ARBUSTO MEANS LITTLE BUSH. THE BIN LADEN FAMILY BANKROLLED ARBUSTO CORPORATION FOR GEORGE W. BUSH IN THE SEVENTIES. HE BANKRUPTED THE COMPANY.

IF THIS NATION ELECTS MCCAIN, THEN THERE IS NO HOPE FOR THE AMERICAN REPUBLIC AS THE FASCISTS WILL HAVE TWELVE YEARS TO COMPLETE THE TRANSFORMATION OF THE DEMOCRACY INTO A BANANA REPUBLIC.

[Agnim]

So let's get this straight:

Americans cross the Mexican border for economic opportunities, yes?

Are these the same Americans who complain when Mexicans cross the US borders for economic opportunities? lol

[popecorvo]

The price of oil is pinned to the U.S. dollar ( a circumstance that will no doubt change within a decade).

If you haven't noticed, the dollare has gone South, much farther South than Mexico.

Would be nice if this was pointed out occasionally between the shouts of, "China! India! Supply & Demand! Drill everywhere!"

[MtDavid]

Imagine! How can a "nationalized," government-run oil company possible be selling gas for less than efficient corporate ones? Wake up America.
Necessities like water and energy should not be privatized.

If private companies are the only way to go, then the must at least be heavily controlled.

[JulieSA]

You're completely mischaracterizing the situation. The Mexican government subsidizes the price of gasoline--the government picks up part of the tab. The gasoline is NOT cheaper; the price is set artificially.

PEMEX is not more efficient than private companies. They have not been keeping up with exploration, and consequently, their production will decline. The government has started to get help from foreign companies again, because PEMEX can't do it.

This is what's happening in Venezuela, too. When Chavez nationalized the oil industry, he fired the people who knew what they were doing and replaced them with political cronies. As a result, Venezuelan production is declining.

[rwe]

can you say government subsidies and NOT TAXING THE CITIZENS INTO POVERTY

[CaptainVideo]

"How can a "nationalized," government-run oil company possible be selling gas for less than efficient corporate ones?"

Because the gasoline is subsidized by the government.

Such subsidies divert government revenue from spending more on things like education, improving infrastructure, providing healthcare, etc. They are actually very shortsighted, no matter how politically popular they may be.

"If private companies are the only way to go, then the must at least be heavily controlled­."

We tried price controls on gasoline and ended up with long lines if front of the gas stations.

[Whipsmart13]

Dude...two things:

(1) The "nationalized" gasoline is subsidized in Mexico
(2) Given the high amount of TAXES on US gasoline, it is unfair to use this as a discussion of the benefits of private versus government-run companies.

[FloaterBall]

Same way with drugs.

[frankky]

Why don't we have a government subsidy to keep health drugs, gas,water, and certain foods
in this all capitalistic corrupted underhanded government of ours? She should put our inflated American pride and learn from others.

[sheila]

unless i'm mistaken, the fine folks of san diego are largely BushBots, and the Military Industrial complex has many tentacles there, so why aren't they paying the prices gladly, as the obvious and predictable result of their bad politics?

right, because just like all right-wingers, they always see themselves as the Ruling Elite, who will be exempted from accountability and who will just sit at the top of the pyramid scheme and skim off all the profits while the costs of their corruption are socialized.

the sad thing is, it has worked so far...

[JessWonderin]

Great point!!!! These folks scamper across the Border to escape the RESULTS of their support of the policies that BROUGHT this ruin . .

Thanks San Diego area for:
Darrell Isa
Brian Brlbray
Randy "Duke" Cunningham
Ducan Hunter
. . . . ALL shameless BushCO Rubber stamps

Think about THAT as you idle back across the Border, and look around that the millions in DRUGS flowing back - funding the Narco-terrorism destroying South America . . .

[tbrnotb]

Love it! The citizens of that republican bastion fn San Diego, that has backed this administration iwith incredible numbers and loud vocal support, is scampering across the border to buy gas!

So true to the motto, they sing so loudly, like a loud mouthed corporate DJ shouts:
San Diego: America's Finest City! LOL!