TIJUANA — U.S. motorists are flocking to gas pumps south of the border to save 25% or more on the cost of a fill-up -- courtesy of the Mexican government.
Worried about inflation, Mexican officials are keeping a lid on retail prices at the state-owned petroleum company Pemex. Regular-grade gasoline in this border town is selling for about $2.60 a gallon. With prices in California averaging $3.43 a gallon -- and topping $4 at some stations -- Golden State residents such as Roger Moore are grabbing a deal while they can.
The 63-year-old management consultant owns a second home in Baja California. He made a point of stopping at a station here this week to top off the tank of his Ford Aerostar van before heading back to his place in West Hollywood.
"It costs $65 for a tank of gas up there and it costs me $45 here," Moore said. "It's a monopoly and it's cheaper!"
Mexican station owners, too, are pumped up by the surge in business. Although they say few Americans are traveling to Mexico specifically to fill their tanks, many more than usual are taking advantage of the chance to buy cheap gas when they cross the border to work or play. Station owners also are seeing increased sales to Mexican residents who work in the U.S.
Pemex outlets along the nearly 2,000-mile border are serving more cars with U.S. plates. The jump is reflected in Pemex's pump sales, up 10.5% through the first four months of the year compared with the same period last year. Vendors are girding for a rush of business this weekend as Americans head to their Mexican vacation homes and take home a cheap souvenir in their tanks.
"This has been very, very favorable for us," said Jorge Farfan Gonzalez, general manager of a franchisee that operates 17 Pemex outlets in Baja.
But some say that low-cost gas may not be such a bargain.
Mexican stations are notorious for dispensing short liters. And their fuel isn't as clean as that mandated in California. That's tough on the environment, and it could harm your vehicle too, said Rich Kassel, a clean-fuel expert with the Natural Resources Defense Council in New York. Mexico's regular gasoline is loaded with sulfur. Kassel said frequent fill-ups could wreak havoc on the catalytic converters of the newest cars and trucks sold in the U.S.
"This is the extreme version of driving across town to save a nickel," Kassel said. "It doesn't make sense if you ... end up with fuel that is dirtier and can damage your engine."
