If Mexico government can give cheaper gas then how come advance country USA can"t?

Question

If Mexico government can give cheaper gas then how come advance country USA can"t?Mexico is poor country and still can afford gas to sell for less but US government can't and have allmost no solution.How ridiculous it is?

Answer 1

They actually allow drilling for more sources of oil.

fs

Answer 2

Several of the answers here are wrong.  The actual answer is, they subsidize their gas.  China does the same thing.  I think the subsidies in China limit the price of gas to something like either $2.99 or $2.69 a gallon.

Here in the USA, we allow free market forces to regulate prices.

If you are using money in one place to keep prices artificially low via subsidies, then you are taking the money away from someplace else.

Such artificial situations/controls don't work over the long term and usually lead to shortages.

Also, they DO NOT sell gas with lead additives.  That is simply not true.  Americans cross the border and gas up with no problem.  You CANNOT use leaded gas in a car designed to run on lead free gas.  On the other hand, you can put unleaded gas in a car that is designed to run on leaded gas.

Answer 3

We support every country but our own.

Answer 4

Several reasons. one is the EPA requires certain additives to be put in gasoline to reduce the pollutants emitted. Second is we import most of our oil because the EPA and libs wont let us drill our own or build more refineries. Third is the tax place on gas by not only the feds but also by the states themselves. There are more but those are the main ones. Mexico has none of the above. They still sell gasoline with led additives. Get the drift.

Answer 5

Mexico has lots of oil.

Answer 6

It is actually more expensive the diference is that the goverment is paying the diference that way the consumer won't be as affected

Answer 7

Because Mexico produces more then they consume...the US is not in that position...we consume twice as much as we produce...supply and demand...not ridiculous

Answer 8

Advanced in what way?

Our government spends way more money than it receives in tax revenue. This contributes to our national debt, which by the end of this year will breach $10 trillion.

One way it generates it's meager tax income is through a tax on gasoline. The tax makes up a solid chunk of the price of gasoline.

Another problem we've had is a ludicrous fiscal policy backed by the Fed and this administration which has caused the dollar to fall quite a bit in value (known as inflation).

And lastly, we have our energy policy. Whatever secret discourse Cheney had with the oil execs we may never know, but what we do know is that it certainly didn't help in the matter of our sad dependence on foreign oil.

We may be technologically advanced, but we are (from a fiscal and energy perspective) idiots. Until we have some sane fiscal and energy policies, you can expect for the price of gasoline to continue to climb.

~X~