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Mexican Gas Cheaper Because Mex. Gov. Regulates Prices?

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limitgov Posted: Tue, Mar 20 2012 8:04 AM

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http://latino.foxnews.com/latino/news/2012/03/19/us-drivers-head-south-to-mexico-for-cheaper-gas/

Is gas cheaper in Mexico because the government regulates the prices? Is that the real reason?

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myhumangetsme replied on Tue, Mar 20 2012 8:14 AM

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Obviously opinions vary:

Gas is cheaper in Mexico because of a government subsidy intended to keep inflationary forces in check.

Clearly low prices (as a result of that subsidy) drawing in American drivers runs the risk of a gas shortage for the Mexican drivers it was intended for.

That aside, the price of gas in Mexico has been on the rise just like ours, so no matter how cheap it is now, it was even cheaper a year ago.

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Wheylous replied on Tue, Mar 20 2012 8:28 AM

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I am not sure about the situation in Mexico, but if my economics is not bad, then let's remember that it is possible for government to make specific products cheaper. Just not everything at the same time.

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Mexican Gas Cheaper Because Mex. Gov. Regulates Prices?

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