How is it possible that Mexico can offer gas @ $2.54 a gallon?

Question

This story is incredible, can someone please explain the economics of how this is possible...

http://www.msnbc.msn.com/id/25175249

Answer 1

Because Bush is a fu**ing A** hole and he owns Oil stock! Why would he care?

When he took office, gas was $1.46.

Answer 2

cuz no one has a car there lol

Answer 3

Mexico is an exporter of oil and the Government  gets part of the profits from the sale so they can afford to sell it for less to their own citizens. Can you imaging what the outcry in the US would be if we produced all of our own oil and were forced to pay world market prices for gas. Most oil exporting countries  sell oil domestically for less than world market prices.

Answer 4

A lot of politicos are making money off of oil via stock holdings and lobbyist donations

Answer 5

Mexico has no policy that forbids oil companies from drill in in-country, off shore and in the Gulf of Mexico as the Democrats forbid us to do.  Simple supply and demand.  Right now...right now if Bill Clinton had not vetoed the "Drill in ANWAR Bill" thirteen years ago, we would be recovering one million barrels a day from ANWAR instead of begging the oil producers for oil./;

We are killing ourselves out of political correctness and environmental lunacy

Answer 6

Government operate oil company

Answer 7

The U.S. government and the Venezuelan government don't get along well. Venezuela has a lot of oil which Mexico gets the gas from, but the U.S. has to get oil from different places so it is more expensive to ship it.

Answer 8

Mexico sits on a large reserve of oil, thus they don't have to import oil from other countries.  Although they probably do from venezuela and other surrounding countries.

Answer 9

From your own article:

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

Answer 10

It's called a government subsidy.