Posted: Thu Jun 19, 2008 11:40 am Post subject: Diesel Shortage US/Mex Border
He did say, however, that Pemex was “taking extraordinary measures” to supply gasoline to that region, particularly in Tijuana, because of the massive influx of motorists from the United States who bought Mexican fuel, the news service reported.
Mexican government subsidies keep the fuel price lower than in the United States. A gallon of regular unleaded gas (87 octane) sells for $2.54, premium (91 octane) for $3.19 and diesel for $2.20.
Rationing of diesel began Friday, with gas stations nearest the border crossing receiving no new shipments since then. [/quote]
Wonder how long Pemex will continue letting US folks get cheap subsidized gas _________________ It's a cold cold world when a man has to pawn his shoes.
Posted: Thu Jun 19, 2008 12:29 pm Post subject: Re: Diesel Shortage US/Mex Border
And we wonder why California is experiencing budget shortfalls? _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Posted: Thu Jun 19, 2008 12:47 pm Post subject: Re: Diesel Shortage US/Mex Border
emersonbiggins wrote:
And we wonder why California is experiencing budget shortfalls?
Down here on the Border in Texas a lot of folks are heading south and filling up on diesel especially those with supplemental fuel tanks 100+ gallons. I also heard our wonderful Customs agency is considering taxing any fuel you bring back that is not in your fuel tank.
I suspect that Pemex will have to do something because it doesn't make sense to send your oil to the US for refining then import it back to subsidize it to Americans visiting Mexico. I wonder how much this situation increases their demand and decreases the US demand? _________________ It's a cold cold world when a man has to pawn his shoes.
Posted: Thu Jun 19, 2008 1:15 pm Post subject: Re: Diesel Shortage US/Mex Border
Quote:
Some say they can save up to $100 a month by filling up every two weeks in Mexico. The extra demand is causing shortages at hundreds of Mexico's border gas stations, some of which are starting to ration fuel.
"It's worth taking the risk even with the violence," said a retired California engineer named Terry, who declined to give his surname, as he filled his red Ford pick-up truck in Tijuana, over the border from San Diego.
"I know they could kill me or kidnap me, but the cost of filling my tank in the United States is just too much," he said.
Mexico's subsidized gasoline -- around $1.40 cheaper per gallon than in the United States -- is a huge draw as average U.S. pump prices hit an unprecedented $4 a gallon ($1.06 a liter). In West Coast cities like San Francisco and Los Angeles, prices are over $4.50 a gallon.
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As pump attendants struggled to keep up with dozens of vehicles lining up for fuel, U.S. and Mexican drivers traded insults. A few even brawled as they waited for hours in searing heat this week in the rough border city of Tijuana.
"I am not budging until I get to the pump. I don't care what anyone says, I've been waiting for two hours," said Jaime Rosales from southern California, at a gas station where buses, trucks and cars all vied to get to the pump.
Even hours of waiting to cross back into the United States at the busy border crossings are not putting Americans off despite misgivings about having to produce proof of U.S. citizenship to return home under new travel rules.
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Tourists who used to come for everything from dental work to prostitutes have deserted Mexican border cities as gun battles occur in broad daylight on busy avenues and gangs dump bodies and severed heads on streets.
Yet such is the clamor for cheap Mexican fuel that Tijuana officials say the city and surrounding areas are running out of diesel after truckloads of fuel due from the oil-producing state of Veracruz were delayed this week.
U.S. motorists are filling up fuel containers as well as their tanks, the Tijuana gas stations association says.
"We have very little reserves left. We are trying to ration sales because we can see the situation is causing outbreaks of violence," said association head Joaquin Avina.
"There are areas without a single liter of gasoline because so many people from southern California are making unusually big fuel purchases," Avina said.
Posted: Thu Jun 19, 2008 1:27 pm Post subject: Re: Diesel Shortage US/Mex Border
UncoveringTruths wrote:
Quote:
"I am not budging until I get to the pump. I don't care what anyone says, I've been waiting for two hours,"
...
Even hours of waiting to cross back into the United States at the busy border crossings are not putting Americans off despite misgivings about having to produce proof of U.S. citizenship to return home under new travel rules.
Hmmm, hours of idling in heavy traffic, both at the station and at the U.S. Border Crossing... that's gotta kill some of the price differential. _________________ "It's called the American Dream because you'd have to be asleep to believe it."
Joined: Apr 16, 2008 Posts: 88 Location: Western PA, USA
Posted: Thu Jun 19, 2008 1:35 pm Post subject: Re: Diesel Shortage US/Mex Border
So true. Whats the saying--"penny wise and pound foolish", seems to accurately describe this American bargain hunters. Plus the risk of getting the crap kicked out of you or worse kidnapped makes this cheap gas seem much pricier compared to back in the states. I'm sorry, I will pay $5 diesel any day over waiting hours to save a buck!
Posted: Thu Jun 19, 2008 1:38 pm Post subject: Re: Diesel Shortage US/Mex Border
Yep but the mindset of risking life and limb to get some cheaper gas that is scary. Desperation! When the folks from the US get their gas they are probably kinda smug about the whole process. They probably go home and tell their neighbors while knocking back some suds. Thats how I found out about it.
I live near a relatively peaceful Ciudad. Might be worth it to get a 100 gallon tank of diesel for the tractor. Heck I know a guy that is going over there regularly. Maybe I could pay him a few extra bucks to get it for me.
Got a do my part for Peak Oil. _________________ It's a cold cold world when a man has to pawn his shoes.
Joined: Jul 04, 2005 Posts: 23 Location: Sacramento, CA
Posted: Thu Jun 19, 2008 2:33 pm Post subject: Re: Diesel Shortage US/Mex Border
well, let's see now . . . ILLEGAL mexicans have been coming into the US for decades, flooding the ER's with uninsured people to treat, often causing hospitals to go bankrupt. not to mention all the many other social benefits of living in the US that they receive.
and yet the mexicans at the gas pumps piss n moan about the damn gringos buying gas !??!\
CRY ME A RIVER, YOU CRYBABY AZZHOLES!! at least the US customers are buying the gas LEGALLY , didnt sneak down at midnight to do it, wont suck up any other resources, and leave right away.
so it's always ok for the much-suffering poor, poor mexican to get every break known to mankind but anyone else that wants to benefit economically is some unwelcome invader? typical.
tell ya what; keep yer cheap gas - but in return take back yer cheap workers. ohh, no deal eh?
(I know, I know, "you got noothin in thees world", yer "just tryin to support yer 9 keeds" .. yadda yadda .. always the sympathy angle .. until paycheck time when you run out & buy 12pack cases of cerveza, and the huge Chevy Truck WITH huge shiny rims WITH blasting stereo, but still whine about money. shuuuuuuut up already. hypocrites )
wait a minute, one more thing; as long as we are on this mexican story, where the HELL do all these poor people get the thousands of dollars to pay the coyotes to smuggle em in? I know they promise a future pay for some services but the smugglers want cash upfront. where does it come from? and why dont the immigrants just take all this cash and .... oh I dunno ....START A DAMN BUSINESS IN MEXICO!?
yes the country is corrupt but other nationalities seem able to start a business there. sorry but something just doesnt add up in all these immigrants alleged horror stories. I call Bullshit !!
Joined: Sep 03, 2005 Posts: 73 Location: Germany, State M-V
Posted: Fri Jun 20, 2008 10:40 am Post subject: Re: Diesel Shortage US/Mex Border
UncoveringTruths wrote:
I live near a relatively peaceful Ciudad. Might be worth it to get a 100 gallon tank of diesel for the tractor. Heck I know a guy that is going over there regularly. Maybe I could pay him a few extra bucks to get it for me.
Got a do my part for Peak Oil.
Hi,
i'm no farmer and only do have some knowledge about growing crops, etc.
But i'm interested since about three years in agriculture and especially in using agriculture to fight the consequences of PO.
Can't you grow on an area some rapeseed (about 1300 Liter of oil per hectare in Central Europe, perhaps up to 1700 Liter in the states with higher temperatures; but beware of the politics of monsanto! So perhaps better no rapeseed, if there are neighbours who are doing the same), sunflowers, false flax (camelina sativa), jatropha, castor-oil plant or any other oil seed plant?
Even with a simple lifting jack it is possible to press the seeds. The oil shoudln't get too warm by pressing.
Afterwards the oil should be filtered, e.g. a coffee filter or two are already a perfect solution, and then stored in a cool place without light. Depending on the temperature the oil can be used some months. But better is it to store the seeds.
@AQIUS
Am i right in the assumption that you would be very pleased to change your position of life with a mexican immigrant?
To get shot is a nice feeling i think, or get drowned, to loose all your money (lend by relatives and friends) to come to the paradise USA.
You know in Mexico the people there are also working sometimes, so they can save money.
It's not the fault of the poor mexicans that GM or Ford built gas guzzling vehicles. Ask the government to start a
programm in subsiding cars with a very high mileage, to enhance public transport, to invest more money in good education for everybody, to invest heavily in renewable energies, etc.
You still can start a new life: Join one of the groups which are producing their own food, stuff and everything.
USA is such a big country and there is still enough land for everybody to do something. In Europe the situation with land is much more worse.
PO means (and that is known since at least eight years): usual life is finished. OIL IS OUT SOON.
Posted: Tue Jun 24, 2008 9:06 am Post subject: Re: Diesel Shortage US/Mex Border
Quote:
Though relieved the diesel crisis was over, gas station owners worried about what steps national oil company Pemex might take to try to avert a future shortage.
Over the weekend in Mexico City, the director of Pemex suggested that station owners in the border region limit sales to drivers from the United States.
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He said the owners are frustrated at the decisions made by bureaucrats in the nation's capital because they don't know that border life is intimately tied to California.
“We can say, for example, to American tourists, 'Come visit us but bring a full tank because we can't sell you fuel,' ” he said. “It's outrageous to think that way.”
He said last week's diesel shortage did not affect sales of unleaded and premium gasoline in Tijuana, which had increased 25 percent this year compared with 2007. Arbitrary decisions made by Pemex, however, could have lasting effect on business, he added.
I wonder how much of the % decrease in the consumption of the Weekly Petroleum Report can be attributed to consumers going across the border to fill up? There are some fairly large cities along the border in Texas and California. It would be really hard to gauge though.
If Pemex rations/restricts fuel to the Border residents in the US there will most likely be a backlash. It would be something akin to cities raising tolls for bridge crossings or the states requiring a vehicle tax for Mexican Tourists.
The US/Mex border regions could easily have tensions heat up. Especially if folks perceive Mexican citizens getting cheap gas while they are being screwed without the same available access.
A lot of Americans work in Mexico at the Maquiladoras and live in the US commuting back and forth same with Mexican citizens working on Visas. Hell I bet half of the school children going to the schools commute back and forth using Aunt Lucy's address to enroll. I’ve seen this first hand. _________________ It's a cold cold world when a man has to pawn his shoes.
Posted: Tue Jun 24, 2008 9:29 am Post subject: Re: Diesel Shortage US/Mex Border
Quote:
This situation arouse this week on the California-Baja California border. In Tijuana demand shot up almost 40% overnight as U.S. tourists and truckers crossed the border to purchase diesel fuel. The same was true for Ensenada, where truckers, tourists and boaters took advantage of the reduced price and filled their tanks and spare containers. Compounding the problem was the alleged bulk buying of diesel fuel by bargain hunters whose intentions were to resell on the U.S. side of the border. In a very short time diesel fuel disappeared from Mexican gas pumps.
Suddenly a crisis erupted, as Baja California’s commercial transportation industry was brought to a standstill. Municipal buses, fire engines and ambulances stopped running. Long lines where visible everywhere, while gas stations became huge parking lots for trailer trucks waiting for fuel to arrive. What little reserves could be found by resourceful station managers was rationed in small allotments. Tourists driving diesel powered trucks were denied service.
The crisis expanded to the U.S. side of the border, where demand spiraled and truckers had no choice but to pay US prices in order to meet clients’ immediate industrial and agricultural market needs. Demand was also increased due to speculative hoarding.
In time, as anxious consumers on both sides of the border began to feel the pinch thieves began siphoning gas from trucks. As well, complete truck gas tanks were dislodged and stolen from their chassis.
Posted: Wed Jun 25, 2008 8:21 am Post subject: Re: Diesel Shortage US/Mex Border
Quote:
MEXICALI – The diesel crisis in Mexicali, the capital of Baja California, has yet to end.
Although a tanker ship carrying fuel docked Saturday at the Pemex plant in Rosarito Beach, which stocks the entire state, diesel has yet to make it to Mexicali via a dedicated pipeline.
Mexican sources said it takes about two days to carry the 150,000 barrels of diesel Mexicali consumes every week through the 93-mile pipeline over the La Rumorosa pass to Mexicali.
The fuel is in the pipeline, but Mexicali marked the 10th day of its fuel crisis yesterday. Gas station owners estimate the problems should be resolved by Friday at the latest.
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Rodrigo Llantada, an executive with the Mexicali Association of Gas Stations, said that of the 53 stations that sell diesel in Mexicali, only two or three had any for sale yesterday.
Pemex, the national oil monopoly, has rationed some supplies to these stations, Llantada said, delivering about 5,300 gallons to each to ensure public transit doesn't grind to a halt.
Llantada said that Pemex's logistics have failed and that no one there has taken responsibility for the problems or offered an explanation.
Pemex indicated that in January through May of this year the volume of imports of petroleum products like gasoline, diesel, and liquefied petroleum gas increased 15.4 per cent, going from 438,200 barrels per day to 505,500 barrels per day.
The increase was due mainly to higher gasoline purchases, which went from 281,100 barrels per day in the first five months of last year to 323,300 barrels in the same period of 2008.
Posted: Wed Jun 25, 2008 9:32 am Post subject: Re: Diesel Shortage US/Mex Border
Just looking at the numbers. According to the EIA Mexican Petroleum consumption has been essentially flat for the past few years, so I believe there is a strong likelyhood a high percentage of those increases are from the combination of drivers chosing to fill up on the other side of the border and well as people shipping it across the border for resale. 70,000 bpd amounts to 0.35% of U.S. demand. There is a possibly that these numbers have increased more within the past couple of months, as the 0.35% is only an average from Jan-May, and there is ample evidence of strong increases of Gasoline demand along the MX border area of late as the gap between U.S and Mexican prices have widened.
This may mean that up to 25% of the supposed demand destruction in the U.S. is not even real.
Posted: Wed Jun 25, 2008 12:24 pm Post subject: Re: Diesel Shortage US/Mex Border
Quote:
HIDALGO -- In a sign of the times for a federal agency that routinely announces million-dollar cocaine and marijuana busts: Customs and Border Protection has issued a news release about a $400 fine because of an extra tank of fuel.
The fine was levied Sunday against a 22-year-old Edinburg man who crossed the border with an extra tank of diesel in the bed of his pickup.
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While it’s not illegal to import fuel, anything that’s not hooked up to the vehicle’s fuel line must be declared and brought in through commercial lanes. In Hidalgo County, that would mean the Pharr International Bridge.
CBP spokesman Felix Garza said the man’s extra tank was not connected to the pickup truck’s fuel lines and was therefore determined to be “commercial,” which made the driver subject to the fine.
Garza said this was one of the first instances of someone being fined for fuel. But he said people were always asked what they were bringing in, and it was assumed they would know they are required to declar an extra, unattached tank of gasoline or diesel.
“Diesel fuel is a foreign commodity,” he said. “Anything you buy or acquire or obtain as a gift is a foreign commodity and must be declared.”
There is a simple fix to their rules. Put a fuel line and switch from the transfer tank to the fuel system. Then I bet they'll change the rules again. _________________ It's a cold cold world when a man has to pawn his shoes.
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