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Mexico suspends gasoline subsidy as U.S. drivers cross border for deals -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: A employee fills a automotive belonging to a Texas resident, with gasoline at a fuel station following elevated gas costs in U.S., in Ciudad Juarez, Mexico March 14, 2022. REUTERS/Jose Luis Gonzalez

MEXICO CITY (Reuters) -Mexico, which has been subsidizing gasoline to melt value spikes, mentioned on Saturday the coverage wouldn’t apply within the U.S. border area this week, citing shortages as extra Individuals drive south to fill their tanks.

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

Mexico’s finance ministry mentioned in a press release there was a gasoline scarcity within the space “from an imbalance between provide and demand.”

“In the US, gasoline costs are increased than in Mexico, and residents of that nation cross the border to refill,” the finance ministry mentioned.

As gas costs have spiked after Russia invaded Ukraine, extra individuals residing in the US are driving throughout the border into Mexico looking for decrease fuel costs.

Mexico’s subsidy has been championed by the federal government of President Andres Manuel Lopez Obrador, who has lengthy promised to insulate shoppers from sharp value hikes on the pump.

In an interview with Reuters on Friday, Deputy Finance Minister Gabriel Yorio mentioned Mexico deliberate to make use of the additional income from increased oil costs to subsidize home gasoline and diesel costs.

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