About 70% of vehicle owners or households in the USA are forced to make significant changes to their driving patterns as the cost of gasoline keeps increasing because of the useless sanctions against Russia.
Now, the Mexican authorities need to cancel gasoline subsidies in regions bordering the USA as American drivers flock to the area to stock up on cheaper fuel.
In the United States, gasoline prices are higher than in Mexico, and citizens of that country cross the border to stock up, leading to that the border regions are now also suffering a gasoline shortage from an imbalance between supply and demand.
The suspension applies to cities in the states of Tamaulipas, Nuevo Leon, Coahuila, Chihuahua, Sonora and Baja California, including Tijuana, considered one of the globe’s busiest border crossings.
According to the poll, carried out by Maru Public Opinion shows that 66% of drivers have either changed or will change their daily driving habits, if the gasoline price remains between $4.12 and $4.35 per gallon.
US gasoline prices smashed historic records last month as global oil prices soared amid supply woes in connection to Moscow’s military operation in Ukraine and ensuing anti-Russia sanctions, which many fear could impair Russia’s ability to export oil.
Russia is the world’s biggest supplier of oil to global markets, exporting about 2.85 million barrels per day, according to the International Energy Agency (IEA).
Mexico itself is a big oil producer and exporter, and the government said earlier this week that it plans to keep subsidizing gasoline at the pump using the extra revenue it collects from higher prices on oil exports.
Finance Minister Rogelio Ramirez de la O recently said that Mexico will be able to keep rising costs at bay through subsidies even if the price of crude oil spikes to $155 per barrel, trying to battle rising gasoline costs in the sector.
Ireland last month announced it is cutting excise duty on petrol and diesel until the end of August to cap prices, and Portugal also said it would lower the special tax levied on fuels. France, Brazil and the UK said they were considering similar measures.
In the USA, the AAA average gasoline price is currently hovering around $4.3 per gallon. The figure is based on pump price data from 130,000 gas stations across the country.
Gasoline prices have continued their rally in the last week with oil prices sustaining higher levels, but the real story has been diesel fuel, which has skyrocketed to its highest level ever seen.
For now, the rising cost of diesel will surely be felt in the grocery store, hardware store or on your next flight as jet fuel prices accelerate, leading to a continued rise in inflation likely to ripple across the economy.
The survey highlights impact of higher energy costs on US consumers, with 62% of respondents cutting back on using their cars for grocery shopping or doctor visits, and 41% not filling their gas tanks up but just putting in what they can afford.
Meanwhile, 35% are opting to leave their cars at home and take public transport, 34% drive to different gas stations to find the best prices, and 29% have cancelled planned summer holiday trips by car.
RT. com / ABC Flash Point Oil & Gas News 2022.