Why is gasoline so much cheaper in Mexico?

Question

I live in San Diego, where gas goes for about $4.50-$4.80 right now. If you drive into Tijuana, Mexico, gas is as cheap as $1.79. Why the difference?

Answer 1

(1) we get most of our gasoline from Canada and MEXICO (not the middle east)

(2) they have cheaper labor

(3) they have less tax

#1 is the major reason.  They have enough oil to sell.  They don't have to pay international open market prices.

Good Luck...

P.S.  I'll bet you didn't know we get most of our oil from our two neighbors.

P.P.S.  IT is NOT subsiding when the government owns the oil pumps.  When (US) government pays private farmers, that is subsiding.

Answer 2

Actually the simple answer is that the government of Mexico is subsidizing the price of gasoline so that the citizens of Mexico won't have to pay over a certain amount for their gas. Look it up in the news. People from the U.S. cross into Mexico just to fill up their tanks.

Answer 3

lesser demand