Americans have never been reluctant to cross international borders in search of cheaper products and services.
Especially travel to Canada and Mexico, the two nations that border the continental United States. to get everything from food or construction materials to home goods, medical treatment, and medications.
Typically, they are items or services that are either unavailable at home or priced so drastically lower that the journey is justified.
Before the price of fuel skyrocketed under the presidency of Joe Biden, the practice was nearly unheard of.
Numerous businesses have been negatively impacted by the increased price of gasoline, including those involved in transporting commodities, personal and professional travel, and commuting and home tasks.
For starters, the gas would be needed to cross the border, and a portion of the purchase would be consumed on the return trip.
However, even if petrol is far less expensive in a foreign nation than in the United States, crossing the border to fill your gas tank is not as feasible as it may initially appear.
It can take up to two hours to re-enter the United States at ports of entry in large American cities, adding to the time spent driving from home to the foreign gas station.
During the previous spring, when petrol prices in California reached as high as $6 per gallon and the U.S. national average was around $4.24 per gallon, several Californians traveled to Mexico to get gas for approximately $2 less per gallon, at $3.96 per gallon.
Even drivers from Texas made the journey.
Granted, if you’re filling up a work truck and you don’t live too far from the foreign gas outlet, you could save enough money to make the trip worthwhile, especially if you cross the border at a less congested port of entry.
The President of Mexico, Andrés Manuel López Obrador, appears to believe that going to Mexico for petrol is well worth the journey.
Since assuming office in December 2018, President Obrador has endeavored to make Mexico a fuel self-sufficient nation.
He campaigned on a platform of revitalizing the state-owned oil company Petroleos Mexicanos (Pemex) and achieving energy independence.
Due to Obrador’s subsidies to Mexican oil businesses and refineries, gas prices in Mexico have stayed largely steady since the surge in prices during the Ukraine conflict.
More on this story via The Republic Brief:
The director of the Center for US-Mexican Studies at UC San Diego, Rafael Fernandez deCastro Medina told Newsweek that Obrador is “someone who thinks like someone in the 1970’s, he really thinks about how important it is for a sovereign country to be independent in gasoline.”
“So what he’s doing right now,” Medina continued, “he’s not only having a negative tax – the IEPS – for gasoline, but he’s also heavily subsidizing gasoline now.”
In December 2021, Pemex announced that it would have to drastically reduce its crude oil export in order to meet the Obrador administration’s plans to have all of Mexico’s oil refined domestically. CONTINUE READING…