Treasury admits country’s northern border is already short of gasoline

A worker fills a car with gasoline at a service station after Mexico suspended a week of gasoline subsidy along the U.S. border, in Ciudad Juarez, Mexico April 2, 2022. REUTERS/Jose Luis Gonzalez

Bad news for motorists on the country’s northern border. The Ministry of Finance and Public Credit (SHCP) acknowledged this Saturday afternoon that there is already a shortage of gasoline in the sector.

In a statement, the agency explained that this is due to an imbalance between supply and demand. In recent weeks, citizens of the United States have crossed the border to load their tanks into Mexico, as fuel prices are lowered for fiscal stimulus.

A poster of the state company Petróleos Mexicanos (PEMEX) shows the prices of gasoline at a CD service station. Juarez (Photo: Reuters)

In addition, supply problems have been reported as a result of importers stopping buying them, so gas stations in the region have the option of buying the product of Petroleos Mexicanos (Pemex), which has been a challenge.

The announcement comes hours after the same body indicated that it would not apply tax incentives through VAT and ISR to importers and refiners selling gasoline across the border strip during the week of April 2-8.

This is why fuel prices are expected to rise even higher in the following municipalities:

Tijuana, Rosarito, Tekte and Mexicali beaches in Baja California; Altars in San Luis Rio Colorado, Puerto Peasco, Caborca, General Plutarco Elias Calles, Nogales, Ceric, Agua Prieta, Santa Cruz, Canaania, Naco and Sonora.

A worker counts money from the sale of gasoline at a CD service station. Juarez (Photo: Reuters)

In addition, Janos, Manuel Benavides, Manuel Ojinaga, Ascension, Juarez, Praxedis g Guerrero, Guadalupe and Coyame del Sotol in Chihuahua; Guerrero in Piedras Negras, Nava, Hidalgo, Ocampo, Acuna, Jiménez and Coahuila.

the municipality of Anahuac in Nuevo León; and the municipalities of Nuevo Laredo, Guerrero, Mier, Valle Hermoso, Reynosa, Camargo, Gustavo Díaz Ordaz, Río Bravo, Matamoros and Miguel Alemán in Tamaulipas.

Despite the increase, the cost will still be lower than in the US.

It is worth noting that the application of fiscal stimulus for gasoline initially responded to the federal government’s strategy to reduce the incidence in recent years in which Mexicans crossed into the United States to refuel at a better price. They went. Now, on the contrary.

(Photo: Cuartoscuro)

For months in the United States, the price of gasoline, as in many parts of the world, hasn’t stopped rising. It increased by 40% from January 2021 to this year, according to data from the US Department of Labor.

But the start of the invasion of Russia – the world’s third-largest producer of crude oil – of Ukraine a month earlier – sent the price skyrocketing. And since then he breaks records.

In this regard, President Joe Biden warned oil companies not to be pleased with “record profits” from rising prices.

“No American company should take advantage of the pandemic or Vladimir Putin’s actions to enrich itself at the expense of American families,” he said.

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