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

[Dissident Dexter]

For karma’s sake, I hope the have their own version of rednecks down there that run around screaming “they’re taking our gaaaaassss” – if only to counter balance the jingoistic “they’re takin’ our joooobbbbbs”

[CaptainVideo]

The smart thing for Mexico to do is to make the subsidized gas unavailable to cars with foreign licence plates and charge such cars a rate consistent with market conditions.

[bendi67]

Calling lou dobbs,beck and loofah oreilly?!!

[kyvette68]

They're in Mexico buying gas.

[Paul]

Low gasoline prices will simply perpetuate an unsustainable transportation paradigm.

Mass transit - the way forward.

[cdembrey]

Mass transit may work in NYC and other compact regions, but what about Kansas, Nebraska and other rural areas?

What about Mega-Sprawls like Southern California? Would you like to take a three hour bus ride to work?

Maybe electric cars are needed. But electricity doesn't appear by magic, some place there is a generating plant burning fossil fuels.

Complex problems aren't solved by simple ideas like lets raise the price of gas!

[pencilpusher]

"Maybe electric cars are needed. But electricity doesn't appear by magic, some place there is a generating plant burning fossil fuels."

True, but it is far far easier to greatly improve the burner technology at generating plants than it is to improve and maintain the technology for millions of automobiles. Check out "point source" vs. "mobile source".

[leduck]

well -- obviously urban sprawl was a very bad idea

should have listened to jimmy carter and gerry brown

[JRandomPoster]

The industrial revolution drove a good chunk of the rural population into the cities. It may be that current conditions will again have that effect.

Still, I am amazed at how many people who can are still buying homes with multi-hour commutes to the cities, are still buying single digit MPG SUV's. Look around. Oil is a finite, non-replenishable resource. The population of this nation, and of the world in general, is growing. Developing nations are not only growing, in fact, they are grabbing up more oil per capita.

At the same time in this nation, we gut infrastructure funding for things like Amtrak. Many cities' mass transit is already utilized to the maximum capacity, yet as a society, we spend our resources on a war in Iraq, as opposed to education, the health of our citizens, and infrastructure - including better and more mass transit.

In the end, I'll agree that a multi-approach solution is probably needed. But shooting down every single prong of a possible approach because it doesn't fix the whole problem just ensures that no solution will be achieved - and someday, the oil will effectively run out.

[CaptainVideo]

"What about Mega-Sprawls like Southern California? Would you like to take a three hour bus ride to work?"

How about a high speed train?

[ccpostman]

Electricity doesn't appear by magic????

Cdembrey - Ever hear of the Sun? There is a thing called solar power. Last I heard sunshine was still free.

[DeweyQ]

Don't we have NAFTA in place which allow free trade between Mexico, the United States and Canada? With the distributors saying the gas prices are so high, in part, due to supply and demand, why aren't they importing gas from Mexico at the lower cost? Yes, I know about federal and local taxes, but the cost of Mexico gas is so low even with US taxes the cost will still lower at the US pumps. Even if Mexico distributors just supplies towns directly across the US-Mexico border the effect would be felt across the US.

[leduck]

With Mexican oil production in sharp decline, there's no way they will increase oil exports to us.

what they are doing and will continue doing is cutting exports to us through time

it's called the "export land model"

Don't count on Mexico do bail us out..., in about 5 years they will have nothing left to export

[robinhood2]

Mexican gasoline is subsidized by the state oil company for sales in Mexico. They export oil at world market prices. Do you think the Mexicans are total idiots? Unfortunately, the subsidies, mandated under Mexican law I believe, starve the state oil company of capital. Oil exports from Mexico are expected to drop in coming years, as a result.

[JRandomPoster]

An attempt was made to subsidize US gasoline with an ill-conceived war in Iraq. The US attempted to import oil from Iraq at less than world market prices. Unfortunately, it didn't work, and the war in Iraq draws a huge amount of US resources that could be used to build out better mass transit and research alternative energy sources. The standard of living in the United States is expected to continue to drop in coming years as a result.

[JulieSA]

From the article:

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

[Redrover666]

And the minimum wage is under $5.00 a day.

[deepintheheartoftejas]

Mexican gas is subsidized for the Mexican consumer. I doubt it applies to gasoline or oil exported to other countries--that'd be nuts.

[Cookie100]

$10.00 a gallon gas is coming to your hometown soon, like that idea, Vote McCain 08 !! Then he'll overturn Roe v Wade and your kids will be drafted, how much you wanna bet! He's going into Iran next, you like this war and the way this country is going, McCain's your guy! Have fun, it's gonna be a blast!

[leduck]

it doesn't matter if McCain wins or Obama
either way....
$10.00 gas is coming to your hometown

the question is, how will they deal with it
figure that out and we'll know which one to vote for

[repuglycon]

After some thought, socializing big oil would result in a big improvement in America's security and concentrate our war on terrorism.

[UnbiasView]

How so, what does the Government know about drilling for oil?

BTW, have you ever known any government workers, angry humans.

[repuglycon]

Clarification...I was referring to a government run by Democrats.

[Anciano]

Gas is SEVEN CENTS a gallon in Venezuela. Just mentioning that is "terrorism" to the Bush Family Investment Values.

[deepintheheartoftejas]

Venezuelan gas prices are terrible for the environment. It's the last place on Earth where there's a waiting list for Hummers. It's cheaper for street vendors to run inefficient, hugely polluting gas generators than to hook up to the power grid.

[starboymikey]

Gas is SEVEN CENTS a gallon in Venezuela.
______________________________________________________________

Anyone know how long it takes to drive from L.A. to Venezuela? I've got a job to quit and a couple of tankers ready to go.

[JulieSA]

it would make production go down and prices go up.

[richardmcnoggin]

All the Illegal Mexicans here in my town left and went back since there are no more jobs for them and cost of living is so high; guess we dont need to build a fence.

[apoyo]

I just read how Mexicans are sending money to their relatives in the U.S. How's that for irony?

[scottarino]

Hello? They've been doing that for generations. Seeing how a dollar is worth like 40,000 pesos.

[zizyphus]

We better forget about building a wall between us and Mexico-the US drivers will just blast through it in fleets trying to get to the cheap gas.

I remember when President Vincente Fox wanted to legalize pot there-if they had, they would have become the #1 tourist destination for American visitors.

[apoyo]

Maybe Mexico will start asking for papers before you are allowed to fill up.

[repuglycon]

After single payer medicine, we need to socialize big oil next.

[UnbiasView]

Then what?

You are obviously a Marxist that has failed in life and need government.

[missviv]

OOOOH scary Marxist alert! Hey McCarthy, read a book and then tell me what Marxism is really about.

[repuglycon]

Mr UnbiasView
I was a DOD engineer who was downsized and replace by one of Hillary's H1B engineers from Punjab.

[4wehttam]

Will you STOP with the Marxist talk already! Geez, it's not a sin to expect OUR government to work FOR us, and not AGAINST us.

[aturner18]

talk about fascism.

[booksnmore4you]

No, it would be fascism that would NOT do this.

Is Norway fascist? They've socialized their oil and use the billions to invest mightily in their people, so much so that they have billions in escrow for the next generation. By contrast, the US has TRILLIONS in debt in saddling the next generation.

[fungeezer]

Must be the value of the dollar. Yeah, right!

[sparkey]

Of course gas is cheap in Mexico. With the billions that the illegal Mexicans have sent back to Mexico, they don't have to raise gas prices to get money into the treasury.

[leduck]

that's what the U.S. exports is dollars

we get goods and services and everyone else gets worthless dollars
when oil is purchsed in eruos then the bottom falls out

[yesyesyes]

Gosh darn that government intervention. Don't they know that free markets help everyhone?

[jennbeez]

Well, free markets love everyone who owns oil stock at least. Like George Bush and his Diddy Bush.

[yappnmutt]

all the oil producing countries charge their own people the price of production plus a reasonable markup for gas and oil except for the US. the US is the only producer that "subsidizes" the producer instead of the consumer.

[UnbiasView]

Now that is just false but go for it, no need to back up a lie.

[ymax]

Well well.

The producer is a Republican, donating cash to our, so called, LAW MAKER.

So why should they give a second thought whom they will support.

Money talk and us the so called comsumers don't have much to give to the politicy DECIDERS aka repubs.

[robinhood2]

Maybe you should have said all third world oil producing countries do. Britain and Norway have very high taxes on gasoline, Canada's are higher than the US, but much lower than in Europe.

[yappnmutt]

you are right. my bad especially in not including canada but bp and dutch shell source most of their oil from other countries.

[leduck]

higher gas taxes is a good thing
we are going to feel really stupid when the price of gas doubles
europe has mass transportation
and we don't

[scooperss]

hypocrite bush says

He had already been urging King Abdullah of Saudi Arabia to increase production. But he said: 'There's no magic wand. It took us a while to get to where we are. It's going to take us a while to get out of it. And the truth of the matter is that there's either got to be more supply or less demand. And demand doesn't decline overnight' - particularly with 'big consumers of hydrocarbons' such as China 'subsidising their populations'.

[elantiq]

Guess we should have invaded Mexico.

[gregjones]

Good point !

[apoyo]

We did that already, for land.

[webweaver]

We did. It's how we got the entire Southwest... including Texas.

[leduck]

lets see....
Mexican oil production is in sharp decline. They will have nothing left to export in roughly 5 years. If anything is found, it will be in expensive to extract, deep waters -- not cheap.

Iraq has a lot of light sweet crude that's easy to get to. Beautiful stuff with a potenially high flow rate. They have'nt Peaked yet so they're production can continue to rise for quite a while. And, the western half of the country hasn't been explored yet.

Better to stick with Iraq. All we need is a little Genocide.

[booksnmore4you]

Stay the course!!!

;-)

[aturner18]

That's a good idea since they're the 2nd largest oil contributer to the US!