What’s Wrong With This Picture?
From a Reader – May 7, 2008
Get a load of this – diesel fuel produced here in the U.S. is being shipped to Mexico, where it costs $2.00 per gallon, and yet it costs $4.00 per gallon, plus, here in the good ol' U.S.A.
Last January U.S. refineries shipped over 41 million gallons of diesel to Mexico. So the diesel fuel was refined in the United States, and shipped all the way to Mexico, and yet it sells for half ($2.00/per gal.) of what it does here ($4.00/per gal.)
Now, what's wrong with this picture? Why can't they just keep it here in this country in the first place, to help keep the price down? If, for example, keeping it here in the U.S. lowered the price to $3.00/per gal., that would still be $1/00/per gal. more than what they are getting now, from Mexico, plus no shipping to a foreign country.
I can't help but suspect that rampant greed, and some Enron-style scam may be at work here. In the meantime, I read that some truckers are paying $1000 to fill up their rigs, and many are on the verge of, or have already gone belly-up as a result.
More Bushonomics at work.
(Article from Oil Watchdog:)
"An Apache Junction, Arizona, trucking firm is fighting to stay in business in the face of $4-a-gallon diesel by driving across the border to Mexico to buy fuel where it sells for $2 a gallon.
CNN tells the story of how Romano and Son built a 500-gallon tank to haul diesel fuel back from south of the border. They made one successful trip, but were told on their second try by border officials that they can only bring 119 gallons across at a time.
Ironically, notes Insider, much of the diesel exported from the western United States goes to Mexico. Here are export figures from the U.S. government's Energy Information Administration.
As diesel was threatening to break through the $4 level in January – the most recent month for which data is available – U.S. refineries shipped 982,000 barrels or 41.2 million gallons of diesel to Mexico.
The 2008 shipments far exceed January shipments in any other year except 2000 and 2001.
Sharon Romano tells CNN she is angry with her government and with President Bush.
Does anybody wonder why?"
Last updated 09/05/2008