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March 11, 2022
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Why is the price of gasoline lower in Mexico than in California?

Why is the price of gasoline lower in Mexico than in California?

But the difference is that in PADD 5 there are additional costs due to environmental requirements that do not exist in other districts, such as in PADD 3, a district that contains Texas and where a large part of Mexico’s gasoline imports come from.

In Alaska, for example, total taxes (federal and state) of 34 cents per gallon are paid, while California pays taxes of up to 87 cents per gallon, according to data from the American Petroleum Institute.

Factors that affect the price of gasoline

California gasoline is more expensive because the state has “unique requirements” for its fuel blends, which are better for the environment but more expensive, Nicole Petersen, a specialist at GasBuddy, said. USAToday.

Environmental policy in California limits even the construction of more refineries and, therefore, there are also more expenses in the transfer of fuel.

These types of environmental requirements do not exist in Mexico and if we add to that the subsidies announced by the government, then the differences in prices between some cities in the United States and Mexican cities on the border can be understood.



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