The border crisis is hitting a different level with gas prices soaring across the country. And Californians are seeing the worst of it. Rather than migrants coming to the United States, Californians are migrating to Mexico to fill up their gas tank which makes this so ironic.
To be fair, if President Joe Biden is going to outsource oil, we’ll use gas stations outside of the country as well. Though tax dollars aren’t going to necessarily see a large shift; maybe they should.
In Tijuana, Mexico, gas is typically $2 cheaper than in the United States. The price is still sitting at almost $4 which doesn’t make it “cheap,” but it’s proven that there’s more than the U.S. can do to solve this energy crisis.
Some of the advertisements at gas stations across the border say, “Cheaper than in the U.S. A.!” and “Don’t worry, be happy in Tijuana.”
In a statement from Mexican President Andres Manuel Lopez Obrador, he promised that the prices wouldn’t be raised beyond the price of inflation. That’s an extremely honorable position to take.
Obrador said, “The state should not neglect its social responsibility, and the state is here to protect people. It’s not about leaving everything up to the market.”
Typically, the market would be a determining factor in price. But due to the energy crisis, it’s not a reasonable time to do so as long as profit margins are in check as well. The problem with the U.S. energy market is taxation.
The U.S. Energy Information Administration reported, “Federal taxes include excise taxes of 18.3 cents per gallon on gasoline and 24.3 cents per gallon on diesel fuel, and a leaking underground storage tank fee of .1 cents per gallon on both fuels.” The EIA also reported that the state tax averages 31.02 cents per gallon.
Turn To 23 reported that Californians are paying $1.19 in taxes and fees per gallon which includes 51.1 cents for state tax, 18.3 cents in federal tax, 10-11 cents for sales tax, 2 cents for underground storage, 15 cents per gallon for the Fuel Under the Cap fee, and 22 cents for the Low Carbon Fuel Standard fee. That’s on top of transportation and cost of product.
It’s no wonder people are going to Mexico for gas.