MEXICO CITY (Reuters) -Mexico, which has been subsidizing gasoline to melt value spikes, mentioned on Saturday the coverage wouldn’t apply within the U.S. border area this week, citing shortages as extra Individuals 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 mentioned in an announcement there was a gasoline scarcity within the space “from an imbalance between provide and demand.”
“In the US, gasoline costs are greater than in Mexico, and residents of that nation cross the border to top off,” the finance ministry mentioned.
As gasoline costs have spiked after Russia invaded Ukraine, extra individuals dwelling in the US are driving throughout the border into Mexico in quest of decrease gasoline costs.
Mexico’s subsidy has been championed by the federal government of President Andres Manuel Lopez Obrador, who has lengthy promised to insulate shoppers from sharp value hikes on the pump.
In an interview with Reuters on Friday, Deputy Finance Minister Gabriel Yorio mentioned Mexico deliberate to make use of the additional income from greater oil costs to subsidize home gasoline and diesel costs.
Reporting by Cassandra Garrison and Adriana Barrera; Modifying by David Gregorio and Richard Chang
