Mexico suspends gasoline subsidy as U.S. drivers cross border for deals causing fuel shortages in border cities

Mexico, which has been subsidizing gasoline to soften price spikes, said on Saturday the policy would not apply in the U.S. border region this week, citing shortages as more Americans drive south to fill their tanks.

The suspension of the subsidy from April 2-8 covers cities in the border states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora and Baja California, including Tijuana, one of the world’s busiest border crossings.

Mexico’s finance ministry said in a statement there was a gasoline shortage in the area “from an imbalance between supply and demand.”

“In the United States, gasoline prices are higher than in Mexico, and citizens of that country cross the border to stock up,” the finance ministry said.

As fuel prices have spiked after Russia invaded Ukraine, more people living in the United States are driving across the border into Mexico in search of lower gas prices.

Mexico’s subsidy has been championed by the government of President Andres Manuel Lopez Obrador, who has long promised to insulate consumers from sharp price hikes at the pump.

In an interview with Reuters on Friday, Deputy Finance Minister Gabriel Yorio said Mexico planned to use the extra revenue from higher oil prices to subsidize domestic gasoline and diesel prices.

  • Puerto Vallarta prepares for National Tsunami Warning Drill Puerto Vallarta is preparing to participate in the National Tsunami Warning Drill, to be held next Monday, May 16, on the Mexican Pacific coast, under the hypothesis of a magnitude 8.2 earthquake, off the coast of Jalisco. This exercise is organized by the National Tsunami Warning System (SINAT) and the National Civil Protection System (SINAPROC),…
  • Where do foreigners come from and where do they live in Mexico? Due to its location, which connects the south of the American Continent with the United States, Mexico is a transit country for foreigners, but it has also become a place of residence for hundreds of thousands who decided to make a life in Mexico. According to figures from the National Institute of Migration (INM), corresponding…
  • Sabores Vallarta will celebrate the gastronomic diversity of Puerto Vallarta The gastronomic diversity of Puerto Vallarta will be presented through the Sabores Vallarta festival, which will bring together a wide variety of restaurants and artisanal distillates, to offer a quality event for locals and visitors. This event that will bring together the authentic flavors of Vallarta, as well as the gastronomic diversity that exists in…
  • Inflation: Latin America’s poor struggle to afford basic foods No item is more essential to Mexican dinner tables than the corn tortilla. But the burst of inflation that is engulfing Latin America and the rest of the world means that people like Alicia García, a cleaner at a restaurant in Mexico City, have had to cut back. Months ago, García, 67, would buy a…
  • They predict 17 named storms for the 2022 Pacific hurricane season starting May 15 The 2022 hurricane season in the Pacific Ocean area will begin on May 15, according to meteorological projections in Mexico, and experts predict that there will be greater activity than last year. For 2022, 9 hurricanes and 8 tropical storms are predicted for the Pacific Ocean; that is, 17 named storms when the typical number…

Puerto Vallarta News

Compare Listings

Title Price Status Type Area Purpose Bedrooms Bathrooms