Why is diesel $2 a gallon in Mexico?

[Th1onein]

And it's almost $5 per gallon in the USA?

Hmmmm? Could it be for the same reason that pharmaceuticals cost less in Mexico?

I think we're getting screwed, folks.

[dsc]

1. they have a state run, subsidized, oil company

which can produce all the diesel they need. This affects us only due to keeping some Mexican diesel off the market.

[Th1onein]

4. You mean Mexico protects it's citizens better than the US does?

I'm assuming also that you mean that they are drilling for their own oil and producing it, right? Because, if they are buying it from the same place we are, the price should be higher, if we are to believe the oil companies.

[dsc]

5. they are an oil exporter and have been for years

so yes, it is their oil.

[depakid]

2. Mexico still produces more than it uses

and Pemex is government owned and so can set domestic prices as it sees fit.

Different deal in the US.

[muriel_volestrangler]

3. Given that crude oil is about $3.20 a gallon

it's clear that $2 for diesel, after refining and distribution, is a heavily subsidised price.

[ruby slippers]

6. could it be for this reason????

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=54411

they can fill up cheaper there.....

[Doug.Goodall]

7. Here are a few reasons

Refineries in Mexico don't have many environment regulations to comply with so they spend very little on being clean

The United States places an excise tax on fuel

Mexico has a nationalized oil industry, making a profit is a paper work deal from the well to pump. To Mexico, it is all profit.

[rosesaylavee]

8. Because the US Dollar has been so severely devalued. n/t

[hokies4ever]

9. If this was Jeopardy

the question to your response would be, "Why is the cost of oil stable when compared to gold but not to the US dollar?"

[rosesaylavee]

10. Haha...

I wish it were. Have you read this thread?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x3318508

[hokies4ever]

11. Ain't that the truth! Also, check this out

http://www.clubconspiracy.com/forum/f12/china-dump-one-trillion-us-reserves-5380.html

Really gives some insight, albeit very grim, of a weak US dollar and how it affects our relationships with China and OPEC.

[rosesaylavee]

14. This was why the US was so upset with Chavez and Iran

They were threatening to use other currency than the US to trade oil. That's a big part of why they were "evil". Any other administration would have had the diplomacy moxie to work something out. But as we don't talk to terrorists - other than on national TV when we threaten them - is it any wonder our economy is tanking.

Just another gift from this admin.

[hokies4ever]

15. What really disturbed me about that article

was how it appears that OPEC is the main reason that China will not sell off the US dollars it has in its treasury. Not only are we dependent upon foreign oil, but we are also dependent upon the graciousness of OPEC. I hate to say it, but it's time to raise taxes on gasoline to decrease demand.

[ret5hd]

16. .

[high density]

17. Except nobody buys oil with gold

Take a look at oil vs. dollar and oil vs. Euro for a better more realistic look.

[salguine]

12. I've said it before, and I'll say it again...

It's time to bring back the guillotine.

[hokies4ever]

13. and the burning of witches

:rofl:

[rucky]

18. Not getting screwed would make us look like commies

and we can't have that.