Gas prices in Mexico

[CaptainTom]

I am not soliciting any sort of political discussion. I am expecting this thread to be strictly economic in nature. If you have something to say about our government, keep it to other forums.

I am beginning to make a lot of business decisions with the cost of gasoline in mind. Trying to be economical is hard work. I've tried the tactics of coasting, and keeping the tachometer under 2k if possible. I get gestures and other niceties from those people in their gas hog vehicles who jack rabbit from red lights, and insist on going 80mph.

Diesel prices now reach a record high of $4.00 a gallon and it is devastating independent truckers and forcing some to stop work.

UCAN gas analyst, Charles Langley says, "At $4.34 a gallon, which is what diesel costs in San Diego, it's simply unaffordable"

Some truckers are diving south where diesel is just over $2.00 and truckers say that the high gas prices are forcing them to go outside of the country to buy fuel to survive.

Langley says that a trucker could save an extra $500 to $1000 to fill up their tank and come back over the border.

With the price of diesel $4.25 here and two-bucks cheaper across the border, you would think it's a no brainer but it's not that easy.

Mexican permits can take time to get, but independent truck drivers say that they have no choice.

Abel Gonzalez, a trucker says that he will pay at least $1000 a truck for Mexican permits; he says that it's the only way that he will stay in business.

Gonzalez says that with each truck he can save $500 a trip and on the first two fills he can make back that money he spent.

When we asked gas analyst, Charles Langley, why a country like Mexico can have cheaper gas, Langley answered very simply, “Mexico has price control."

[123canon]

how's that coastin working for ya Tom? i tried the the whole keep it under 2k, never over 3.5k coast blah blah blah and i went from 18.5 to 18.9 mpg-needless to say i am back to my gas guzzling ways!

[Summer Ball]

Mexican gas stations have also been known to water down their gas, thus wrecking engines.

[Hogleg 44]

On a trip to Seguin two weeks ago, I saw absolutely no speed slowdown on IH35 from what it always has been in the past.
Fast and Faster!!!
The only thing slowing anyone down was the 40mph south wind....which cost me about 2mpg!

[studiocygnet]

I was down in Harlingen/McAllen/Laredo last week, and just across the border at nice big clean super stations that look brand new, the regular unleaded was $2.75. It was around $3.85 just back on this side. So if I lived down there and had a big tank, I'd sure do it.

[David_3]

Originally Posted by CaptainTom

I get gestures and other niceties from those people in their gas hog vehicles who jack rabbit from red lights, and insist on going 80mph.

Whoops! Sorry Tom, I didn't realize that was you.

[azbaron]

Just FYI...

If you go to Mexico to buy gas, you potentially have to pay tax on it when you come back into the U.S. - unless the purchase is incidental to the trip. Also, the previous statement about water in the gas is true. When I worked on the border, and gas was cheaper, we had Mexicans crossing the border to buy gas in the U.S. because it was better gas...

azbaron

[CaptainTom]

So the axiom of "don't drink the water" also applies to "don't pump the gas because it has water". What's with Mexican water ???

[AllenAyres]

I guess we could drop a few amoxil caps into the tank ;)

[Howard Barlow]

Originally Posted by azbaron

Just FYI...

If you go to Mexico to buy gas, you potentially have to pay tax on it when you come back into the U.S. - unless the purchase is incidental to the trip. azbaron

How would they know? Do they test some? It's been 35 years since I crossed the border from this side, so, I imagine it may be a little closer checking. OTOH, crossing the Canadian border consists of handing them (both sides) the passports, answering why we are entering, or how long we were gone, and having the passports handed right back.

[LegacyPhotographic]

Tom, I am also pretty amazed at how many people driving guzzling vehicles dont change driving habits... shoot, even people driving fairly economical vehicles. I recently got a new car, and it has forced me to be more conservative in my driving, as the engine is underpowered, and driving the Dallas aggressive way I was used to, was wreaking havoc on fuel consumption. That's not to say I dont speed some (on highways only), but I have done more coasting, using brakes a little less on corners, accelerated slower, and tried to remain more consistant in my speed (cruise control). It has helped my average mpg by a couple mpg higher.

There are other things to consider as well.. kind of tires used, tire pressure... spending 40-60 bucks on a K&N filter not only saves money from not having to replace the air filter regularly, but increases airflow efficiency and aids in mpg as well (varies depending on the vehicle, obviously). Using an efficient oil to match your vehicles needs, etc. All these things can add up on your mpg. They can add up in cost too though, so it boils down to using that thing we all hate (math) and determining what is or isn't worth it.

Dang.. sorry about that everyone... sometimes I just go into Energizer Bunny mode. Feel free to ignore me.

[pavi]

Petróleos Mexicanos (PEMEX) is Mexico's state-owned petroleum company. It is the 10th largest oil company in the world in terms of Revenue and 34th place out of the Fortune 500 companies

PEMEX, despite its current $77 billion in revenue, pays high taxes that contribute with a large portion of the budget of the federal government. Indeed, in recent years the company has only been able to make ends meet through massive borrowing, so that it now owes a staggering $42.5 billion, including $24 billion in off-balance-sheet debt because the Mexican government treats the company as a major source of revenue. The state-run company pays out over 60% of its revenue in royalties and taxes, and those funds pay for a third of the federal government's budget. If oil prices drop or there are no major new discoveries of crude, that could spell big trouble for PEMEX despite its immense revenue stream and expansion prospects. However, in 2005, with record-breaking oil prices (due to the Iraq war, economic expansion of the United States and the People's Republic of China) the company has seen an unexpected excess of funds. This tendency continued in 2006, but these funds have been used to pay salaries of bureaucrats and current costs, instead of being invested in projects of exploration and production; during President Fox administration, these funds represent around 70 billion dollars[2], yet the administration says there is not enough money to pay the debts.

To help capitalize the company former President Vicente Fox brought forward the possibility of making shares of PEMEX available to Mexican citizens and pension funds, to complement a current project-specific investment setup known as "Proyectos de Inversión Diferida En El Registro del Gasto" or PIDIREGAS[3]; this proposal, along with alleviating PEMEX's heavy tax burden and a substantial budget increase, have met opposition in Congress.[4][5]

President Calderon made clear at the beginning of his presidency that he would respect the constitutional mandate to keep Pemex in government hands, but that he would try his best to open up the sector to private investment.[6]

[nancyc]

I just wish that everytime I visit my native country (Venezuela) I can bring gasoline instead of Rum! (maybe both???) The price per galon is the cheapest one in the world! (around 15 cents a gallon, or something like that...)

I'm with Robert, we have to drive smarter. My little car gets usually 32 mpg, but with Robert's tips it has to be better!

[Truckman]

For those making the trip, be sure your fuel lines are all connected...Ben