ULSD

tepetapan wrote:
"How do we explain this high cost of fuel in Mexico? Almost a complete reversal of cost comparison between the US?"
WE explain it because it is yet to be a free market system and that is how it works in Mexico. WE can also explain it because most of the gasoline is imported from the USA.
If you follow along the major newspapers in Mexico, it was explained that even WHEN it is an open market that not to expect the prices to ever drop to USA prices. Do you really think Gulf is going to sell gas at $1.90 US when they can easily sell it for $3.50? Dream on. When things settle out in a couple years, Pemex, Gulf and Oxxo prices are all going to be in the same price range. Give or take 20 cents.
The price of fuel will be what is determined by availability and tax structure, plus the cost to pay back infrastructure of pipelines and tank farms. It is never going to be the same as the USA.

X2

Adding to that the huge financial commitment that Pemex and the union has to its employees that will drag out for another 25 to 50 years. It's a nightmare that will never go away in my lifetime.

I hope we have learned a lesson from revolutions (recently read a thesis study on revolutions around the world over the last 200 years and only three were of any real purpose and the Mexican was not one of them) and the nationalization of companies.

Imagine if we had left well enough alone. We could be a much more prosperous nation.