Gas is often as much as 40 percent cheaper in Mexico than it is in the U.S., thanks to a Mexican government subsidy that keeps prices down across the border. As we reported last month, many Americans in border states have realized this, and begun crossing the border to fill the tank.
But the cheap ride may be ending.
The San Diego Union-Tribune reports, "Truck and bus drivers experienced a day of chaos in Tijuana yesterday, as they chased a dwindling supply of diesel fuel. Today was shaping up to be even worse." Drivers from the U.S. crossing the border to buy Mexican diesel have caused "a shortage of the fuel, and gas stations nearest the border crossings started halting or limiting sales last weekend. By yesterday, diesel had started to run out at outlying stations, provoking delays or cancellations in public and private transportation."
While diesel has been affected first, gasoline may not be far behind.
Texas CBS affiliate KGBT reports, "A gasoline dealers association in Tijuana estimated that fuel sales in the region have risen by 25 percent for the first five months of 2008 compared with the same period last year. The group credits the increase to demand from California motorists."
The Houston Chronicle reports that Mexico's "proven oil reserves are shrinking, and it lacks refining capacity." In fact, Mexico imports more than 40 percent of its gasoline from the U.S. -- fuel is refined in America, then trucked into Mexico where it is sold at low prices, often to Americans who have crossed the border seeking cheaper gas. "Newspapers throughout Mexico on Thursday published the government admission that it can no longer afford gasoline subsidies that are costing it almost $20 billion a year."
U.S. border patrol agents may also crack down on the practice soon. The Chronicle explains, "After seeing a spike in extra tanks and containers, U.S. Customs and Border Protection published an advisory telling people that anything not in their vehicle's gas tank qualifies as a commercial import and must be brought in and documented through commercial lanes."
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