The Mexican government is looking for a way to keep Americans out. The culprit: high gas prices.
Gas prices are near record highs across the U.S., thanks mostly to Russia’s unprovoked invasion of Ukraine. But nowhere are they higher than in California.
According to AAA, the nationwide average price of a gallon of gasoline this morning stands at $4.19. The Golden State, however, sees an average of $5.85. The discrepancy is partly due to higher gas taxes. But analysts say that explains only a small part of the price difference, with oil industry profit-taking sharing the blame.
Prices can be as much as $2 cheaper just across the border in Mexico, however. That comes thanks to Mexican government subsidies.
The government of President Andres Manuel Lopez Obrador uses revenue from oil drilling to subsidize domestic gasoline and diesel prices. That has resulted in a sharp price differential with the neighboring United States, sending many Americans across the border to fill up.
Now, the Obrador government is suspending the subsidies near the border to deter Americans from stocking up on Mexican gas. 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. It includes the busy border crossing of Tijuana.
Californians may be able to look forward to their own subsidy soon. Legislators in the Golden State are debating a proposal to provide drivers with gas cards worth up to $800 per household to help weather the price spike.
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