Mexico, which subsidizes gasoline to curb price increases, said on Saturday that the policy would not be implemented in the US border area this week, citing shortcomings as more Americans drive south to fill their tanks. LOWER GAS PRICE VOLTAGE AFTER THE OIL RESERVE DECLARATION The subsidy suspension from April 2 to 8 covers cities in the border states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora and Baja California, including Tijuana, one of the busiest border crossings in the world. The Mexican Ministry of Finance said in a statement that there is a shortage of gasoline in the region “from an imbalance between supply and demand.” A person pumps gasoline in his car. (iStock / iStock) “In the United States, gasoline prices are higher than in Mexico, and the people of this country cross the border to get stocks,” the Treasury Department said. As fuel prices soar after Russia’s invasion of Ukraine, more people living in the United States cross the border into Mexico in search of lower gas prices. ENERGY GROUPS TARGET BIDEN ADMINISTRATION FOR RESISTANCE TO EXPAND INTERNAL OIL PRODUCTION The Mexican subsidy was backed by the government of President Andres Manuel Lopez Obrador, who has long promised to isolate consumers from the sharp rise in pump prices. GET FOX BUSINESS IN ENGINE BY CLICKING HERE In an interview with Reuters on Friday, Deputy Finance Minister Gabriel Yorio said Mexico plans to use the extra revenue from higher oil prices to subsidize domestic gasoline and diesel prices.
