autoevolution
Car video reviews:
 

Mexico Turns Off Cheap Fuel Tap for Americans Who Used To Cross the Border To Fill Up

The fuel prices have gone crazy in the past month, prompting people to take measures. Some of them living closer to Mexico discovered that fuels are cheaper over the border and soon, many people crossed to fill up with cheap fuel. But it wasn’t long until Mexican authorities took notice and they have since turned off the cheap fuel tap.
Mexico suspends gas subsidy as Americans cross border for deals 6 photos
Mexico suspends gas subsidy as Americans cross border for dealsMexico suspends gas subsidy as Americans cross border for dealsMexico suspends gas subsidy as Americans cross border for dealsVarious Fuels USThese hypermiling techniques will save you a lot of money on fuel, despite the sky-high prices
The fuels are cheaper in Mexico because the Mexican government decided to subsidize gasoline to soften price spikes. But this has led to abuses near the U.S. border, as a lot of Americans crossed the border to buy cheap gas. The business was so lucrative that soon the Mexicans faced fuel shortages in the area. The government stepped in to solve the situation and, as it usually happens, decided to eliminate the subsidies for everybody, at least in the border states.

According to Reuters, the suspension of the subsidy is temporary, from April 4-8. The decision affects people living in the border states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora, and Baja California, including Tijuana, one of the world's busiest border crossings. Now, that’s a good reason for Mexicans near the border to look angrily at any American driving south. After all, they have to pay more for gas, at least for a while.

The Mexican authorities cited “an imbalance between supply and demand” as the root cause of their decision. “In the United States, gasoline prices are higher than in Mexico, and citizens of that country cross the border to stock up,” Mexico’s finance ministry said in a statement.

Gas prices have spiked after Russia invaded Ukraine, and people in California pay some of the highest gas prices in the country. The average gasoline price in the state is $5.84 per gallon according to AAA, whereas the U.S. average sits at $4.18 per gallon at the time of writing. The average price of gas in Mexico is $4 per gallon, but it could be found as cheap as $3.30 at select stations in Tijuana.

 
 
 
 
 

Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories