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Russia-Ukraine : Mexico Suspends Petrol Subsidy To Stop U.S. Drivers From Crossing To Buy Cheap Fuel
Mexico has suspended petrol subsidy until April 8th to stop U.S. drivers from crossing to buy cheap fuel.
The suspension covers cities in the border states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora and Baja California.
Prices of fuel have spiked in the United States, following Russia’s invasion of Ukraine weeks ago.
This has forced Americans to drive across the border into Mexico in search of lower gas prices.
Mexico on Saturday suspended petrol subsidy in states closer to United States border to stop American drivers from crossing over to buy fuel at subsidized rates.
The suspension, from April 2-8, covers cities in the border states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora, Baja California and Tijuana.
Prices of fuel have spiked in the United States, following Russia’s invasion of Ukraine, forcing Americans to drive across the border into Mexico in search of lower fuel prices.
Mexico’s finance Ministry, in a statement, said there was a gasoline shortage in the area “from an imbalance between supply and demand.”
“In the United States, gasoline prices are higher than in Mexico, and citizens of that country cross the border to stock up,” the finance ministry said.
Mexico’s subsidy has been championed by the government of President Andres Manuel Lopez Obrador, who has long promised to insulate consumers from sharp price hikes at the pump.
