ULSD

How would the farmers and those with older trucks afford the increase in the cost of the fuel?

I do understand that in theory ULSD costs more than LSD - and we did see that rise in cost in the US - no question.

But right now fuel in Mexico is about the equivalent of $1.50 more per gallon than in the US. How do we explain this high cost of fuel in Mexico? Almost a complete reversal of cost comparison between the US cost and the cost in Mexico 6 - 8 years or so ago. We often question how the Mexican people can absorb this substantial rise in their cost of living. High fuel costs mean trucking/shipping costs more so the end price of goods on the shelves would be higher across the board. It is not just the individual but the economy over all that feel this. It is not just farmers and old trucks but every individual.

Looking back in our log books we keep a record of every tank of fuel we have bought as full time RVers for over 10 years now. We know what fuel in the US has cost and what fuel in Mexico has cost. There was a time around 2007 - 2008 when we were paying over $4.50 a gallon in the US - in Mexico we were paying around $1.80 or equivalent thereof. In about 8 years the people of Mexico have had to find a way to pay for another $2.00 per gallon?


I know the price we pay at the pump may have nothing to do with what it costs to get the crude out of the ground. And the added cost of converting old refineries to new technology is excessive to say the least. But as I said and as article I have previously referenced have stated the contracts have been let and money paid and construction begun on the upgrading of refineries. The article I previously referenced stated the names of the refineries and who was under contract to do the work and how much was being paid for the conversion. I do not know how many refineries there are in Mexico or where they are located but it did seem that the list included quite a few locations.

And according to the Hoy No Circula they are already working on getting cars under a certain emissions levels in Mexico City and the surrounding states by requiring inspections and stickers or restricted days of operation for those who cannot pass these tests. It well may be quite awhile before any of this comes to more than talk - how do you police a population of over 30 million daily? But at least they do seem to be trying.

I also previously referenced articles about fuel surcharges and my experiences as a trucker getting paid for the higher fuel costs. There is still a fuel surcharge in the US and I did find a limited about of information about fuel surcharges in Mexico. Of course his does not apply to farmers or individuals as near as I can tell. Maybe farmers get other tax breaks or assistance - I have no idea.

Speculation masquerading as fact is not fact. Let's see how the facts shake out.