Diesel cost in Mexico vs Diesel cost here

Diesel cost in Mexico vs Diesel cost here

I have a dumb question. In a recent thread in another blog, an RVer bought diesel in Mexico for approximately $2.20 per gallon. As soon as he crossed the border, it was $4.00 per gallon. Why is there such a high price difference? I find it hard to believe the difference is entirely taxes and emission standards (lower sulphur content here).

Does anyone have an explanation?


9 Comments

quyen on December 23, 2013 at 8:22 pm.

I have no idea for sure, but have been told that Mexico uses their own oil, has their own refineries and does not have all the government control and manipulation we do.

That being said, don't try to bring a big tank of it across the border and get caught, it will cost more than it is worth doing so.

I hear almost daily about the cost of diesel being kept artificially high because of so many RVers on the roads with diesels, the truth of the matter is we RVers are a tiny drop in the bucket of diesel fuel usage. I do however think it is being kept artificially high because the over the road trucks, diesel burning locomotive engines, diesel powered cargo ships, and all the other commercial diesel burning entities in this country can not shut down.

I know my sister and brother in law have an asphalt plant that burns somewhere near 450 gallons an hour when they are operating. How would you like to pay for a fill up of their 7000 gallon tank then burn 3600 gallons of it out on a normal eight hour work day. Imagine how much fuel a diesel burning power plant burns a day generating electricity, we saw several of them in the deserts of SE Arizona last winter.

Happy RVing.

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Rickey on December 26, 2013 at 3:38 pm.

This article, written by the gov’t probably a couple of years ago, explains the pricing of diesel fuel. About 47 cents/gal is taxes. The prices they use and predict for 2008 are laughable but it is informative.

Several of the components are probably in operation, explaining the difference in price between here and Mexico.

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ilana on December 27, 2013 at 8:00 am.

Good article Thuy, thanks. Some of it is truly hilarious, but it bears out that government regulations and taxes are going to be a large part of the equation at the pump. It still costs less to make diesel than it does gas.

Happy RVing.

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carma on December 29, 2013 at 6:46 pm.

People in border towns/Snowbirds fill up in MX all the time, no issues…some even have multiple gas cans in the P/U bed when they come back across. Now if you tried to come across with a tanker truck, that would be a horse of a different color…but then you’d likely be commercial and would have been blocked at the border anyway. No way to get my big truck across, otherwise I’d fill up the 300 gallon tanks!

Petroleos 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. The Mexican Government closely regulates and supervises the operations of PEMEX

Mexico is not a member of OPEC (Organization of Petroleum Exporting Countries). PEMEX has been selling low sulfur diesel in the northern border line since January 2007. This supply responds to Regulation NORM082, which establishes a schedule for PEMEX to supply low sulfur content across the country in the future.

For the moment, you can find low sulfur diesel in the following places: Ciudad Juarez, Ensenada, Mexicali and Rosarito. On 5/16, the cost of a barrel of MX crude was:

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aldo on January 1, 2014 at 12:09 pm.

Homemade Biodiesel is looking better and better everyday… I wonder if I can build a mobile biodiesel processor that would fit in the bed of the truck when on the road? Diesel in Panama City, Florida today is $4.43/gal.

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Cherlyn on January 4, 2014 at 11:55 pm.

$4.56/gal was the chepaest in Page, AZ today. Last week we saw one diesel pump at $4.89/gal! The cheapest was $4.09 in Holbrook about a week ago. Since construction is disrupting access to the station, the low price was probably the enticement.

The rest were higher.

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Mercy on January 5, 2014 at 9:43 am.

Diesel was $5.03 in Seward, AK last week end. Ya’ll c’mon up.

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Guillermo Fishbeck on January 9, 2014 at 5:03 pm.

What we have to remember is that Mexico doesnot have USLD but doeshave LSd in some places nearthe border.I fyou have a 2007 or newer rig,you could damge your deisel engine by filling with LSD.

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Lasandra on January 10, 2014 at 8:12 pm.

At what point do you think the smuglers (or Columbian Cartel) will add fuel to their list to bring into America? LOL

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