Mexican Diesel. Options

[Whirlwind]

An Apache Junction, Arizona, trucking firm is fighting to stay in business in the face of $4-a-gallon diesel by driving across the border to Mexico to buy fuel where it sells for $2 a gallon.


CNN tells the story of how Romano and Son built a 500-gallon tank to haul diesel fuel back from south of the border. They made one successful trip, but were told on their second try by border officials that they can only bring 119 gallons across at a time.


Ironically, notes Insider, much of the diesel exported from the western United States goes to Mexico. Here are export figures from

the U.S. government's Energy Information Administration.


As diesel was threatening to break through the $4 level in January -- the most recent month for which data is available -- U.S. refineries shipped 982,000 barrels or 41.2 million gallons of diesel to Mexico. The 2008 shipments far exceed January shipments in any other year except 2000 and 2001.


Sharon Romano tells CNN she is angry with her government and with President Bush.


Does anybody wonder why?

[Robotspyder]

An Apache Junction, Arizona, trucking firm is fighting to stay in business in the face of $4-a-gallon diesel by driving across the border to Mexico to buy fuel where it sells for $2 a gallon.
Ironically, notes Insider, much of the diesel exported from the western United States goes to Mexico. Here are export figures from
the U.S. government's Energy Information Administration.


As diesel was threatening to break through the $4 level in January -- the most recent month for which data is available -- U.S. refineries shipped 982,000 barrels or 41.2 million gallons of diesel to Mexico. The 2008 shipments far exceed January shipments in any other year except 2000 and 2001.

Sharon Romano tells CNN she is angry with her government and with President Bush.
Does anybody wonder why?

So let me see if I get this correctly .....

The US sell fuel to Mexico and they are able to sell it at a profit at $2.00 a gallon.

Folks, we must be dumber than we look! (IMG:style_emoticons/default/blink.gif)

[solitary]

If I may speculate...
Mexaco probably doesn't tax road fuel. That alone is a savings of 12.5-25% of the cost. It's probably cheap to transport diesel, lack of haz mat requirements, larger shipments (no weight restrictions), unqualified (by US standards) drivers, when mistakes happen and a few thousand gallons spill on the street, there's no team on stand by to clean up the mess, emissions standards (low-sulfur vs. high-sulfur) it all adds up quick.
I wouldn't say we should let anybody drive 10,000 gallons of fuel anywhere they like in the US. I think the haz mat requirements are smart, not for the everday, but for the once in a career mishap. The 500 gallon tank is pretty ingenious, but it probably violates some EPA standards and I'd guess that's where the problem comes in.
But I agree, why are we selling fuel to mexico and then paying more to import it from somewhere else? If it's because it's sub-standard, I guess I understand, but does it really make a difference if we get rid of all the dandylions in our yard and our neighbor's yard is blooming yellow?

[legaleagle]

Does anybody wonder why?

Your post might be more informative if you just said why.



The reasons are the the prices are set by the govt, there are more lax environmental standards, and fuel taxes are lower.

[Whirlwind]

Yep. And Mexican rigs can have more than 119 gallons on board when they cross the border. Avoiding fuel taxes here that pay for road repairs. That's OK if you'll be happy with roads like they have in Mexico, here. If that fuel is not legit here, why aren't the Mexican trucks covered?



A third world crap hole sees the importance of cheap ready fuel, even if they have to use scarce resources to subsidize it. But we're a superpower, so we can pay more, right? Last I read we are a debtor nation. Might want to take a look at what works for those type countries.

[gp80mac]

That's why they are 3rd world crapholes. They dont tax their fuel, have no infrastructure, no emission standards...

Do we really want that?

[Whirlwind]

"That's why they are 3rd world crapholes. They dont tax their fuel, have no infrastructure, no emission standards...

Do we really want that? gp80mac



Didn't know emissions regulations and subsidized fuel were mutually exclusive. Same for road use taxes collected. Seems to me those processes would actually be streamlined, being controlled by the same entity.



Yes, I have extreme reservations trusting such a plan to the current variety politician. We must demand those with integrity. So much of what has gone wrong with this Nation is based on this fault. Throwing the bums out doesn't work if those on the supposed other team, are really the same thing with different hats.

[Bigby_M]

Avoiding fuel taxes here that pay for road repairs. That's OK if you'll be happy with roads like they have in Mexico, here.

Are you kidding? The roads here are atrocious. Yesterday I had the misfortune of travelling down Miller Road in East Pete.

My God is that a pos road.

And the Lancaster city streets aren't much better.

For 2 bucks less a gallon I am not sure I would notice the difference between our crappy roads and Mexico's roads.

This post has been edited by Bigby_M: May 9 2008, 08:21 AM

[solitary]

Are you kidding? The roads here are atrocious. Yesterday I had the misfortune of travelling down Miller Road in East Pete.

My God is that a pos road.

And the Lancaster city streets aren't much better.

For 2 bucks less a gallon I am not sure I would notice the difference between our crappy roads and Mexico's roads.

The weather is a lot more cooperative there, I think that's why you see the biggest difference, if you can pave it and do nothing for decades, you don't need as big a maintenance crew as you do here. Don't get me wrong, I think PennDOT's road crews need a serious overhauling, but the main difference is that there's a lot less stress on those roads from non-vehicles than here.

[Bober40]

The weather is a lot more cooperative there, I think that's why you see the biggest difference, if you can pave it and do nothing for decades, you don't need as big a maintenance crew as you do here. Don't get me wrong, I think PennDOT's road crews need a serious overhauling, but the main difference is that there's a lot less stress on those roads from non-vehicles than here.

Oil Surpasses $125 Per Barrel Oil Rises From Thursday's Record close

http://www.wgal.com/money/16209999/detail.html

Oil prices surged past $125 per barrel Friday on the eve of the U.S. driving season as a weakening U.S. dollar drove investors to snap up commodities. Light, sweet crude for June delivery rose as high as $125.12 a barrel in electronic trading on the New York Mercantile Exchange at midday before falling back to $124.86 by early afternoon in Europe. On Thursday, the contract rose to a record close of $123.69 a barrel.



This post has been edited by Bober40: May 9 2008, 10:38 AM

[grieker]

Kind of like the people in Kansas pay less for natural gas than those in Colorado, yet the people in Kansas get their natural gas from Colorado.



Or like one of the most expensive places to buy Alaska King Crab? Anchorage.