Mexico suspends gasoline subsidy as U.S. drivers cross border for deals
MEXICO CITY (Reuters) -Mexico, which has been subsidizing gasoline to melt worth spikes, stated on Saturday the coverage wouldn’t apply within the U.S. border area this week, citing shortages as extra People 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 stated 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 larger than in Mexico, and residents of that nation cross the border to fill up,” the finance ministry stated.
As gas costs have spiked after Russia invaded Ukraine, extra folks dwelling in the US are driving throughout the border into Mexico seeking 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 customers from sharp worth hikes on the pump.
In an interview with Reuters on Friday, Deputy Finance Minister Gabriel Yorio stated Mexico deliberate to make use of the additional income from larger oil costs to subsidize home gasoline and diesel costs.
(Reporting by Cassandra Garrison and Adriana Barrera; Enhancing by David Gregorio and Richard Chang)
