Why is the price of gas so much cheaper in Mexico than in the USA?

Question

Why is the price of gas so much cheaper in Mexico than in the USA?

Answer 1

they have pemex...but what mexico does is send it to america so i can b refined...it would b cheapier but they do that and U.s.a sells it to them back...isnt that dumb! Mexico doesnt have the means to refine it but they do have petroleum but just  dont have the machinery to refine and thats y they send it off!

Answer 2

Pemex is government owned and regulated

Answer 3

Just came back from Tijuana and Rosarito and gas in both cities is just about the same as it is here in Los Angeles.  We paid 4.25 a gallon in Tijuana.

Answer 4

America gets 20% of oil from mexico - fyi

I dont think 50 cents is that much cheaper.

Answer 5

Mexico's Oil belongs to a state own company call Pemex, and prices are regulated by the state not the market.

In mid 2007 the discussion of how much oil prices should increase was  discusted at the mexican congress, they stablish a rate for this year´s gasoline prices.....they never expected the rise in prices that the rest of the world is having.

Now mexican gasoline has a big subsidy, since Mexico although produces crude oil, imports something like 50% of all the gasoline consume by Mexicans...

In other words The Mexican government is paying part of my tank every time I go to a gas station.

Answer 6

Already answered, but Pemex is owned and run by the government. Unfortunately the price may be great for mexicans (and Americans who cross the border for cheaper gas), but Pemex is getting in debt by keeping the price so low.

It would be different if Mexico had it's own refinery and unlimited oil supplies, but it doesn't. Cheap gas is only a quick fix, but Pemex must search for alternative fuels and for the meantime increase oil exploration in the coast. Oh, and not to mention stop giving candy cane salaries to bureaucrats who refuse to work.

Sadly the issues of PEMEX is a sensitive topic to mexicans, fueled the by uber patriotic history lessons given in mexican education programs. Congress can't agree on raising the price of fuel because leftists think that would be selling the country to teh eeeeeeeeeeeeeevil foreigners.

I've heard PEMEX is even more bankrupt than IMSS.

Answer 7

One gallon (3.8 liters) of unleaded regular gas can cost in San Diego around 4.61 dollars, while in Tijuana it costs somewhere around 2.54 dollars. In diesel, the difference is even greater, while in the US it costs around 5.04 dollars, in Tijuana it is 2.20 per gallon.

The main reason gas is cheaper in Mexico is because the Mexican government subsides its price in order to contain inflation.

So you see, even with the long lines and time lost in border crossing, some people do see savings in purchasing fuel in Mexico.

Edit: To those who say there is no difference in price, the Pemex price for the border zone for Magna Sin is 7.57 pesos per liter.

Here is a link in Spanish to a newspaper from Ciudad Victoria, Tamaulipas, referring to this subject:

http://www.diariodeciudadvictoria.com/ar...