For Cheap Diesel, Should You Head to Mexico?

Could we see a big surge of truck drivers heading to Mexico for cheap diesel?

Diesel is even more expensive than regular unleaded gasoline right now. There is a supply shortage worldwide in diesel.

But in Mexico, where the government subsidizes diesel fuel, the price is at least 50% cheaper than in the United States.

CBS Evening News recently talked to one truck transportation business owner who decided to drive three hours from Phoenix to Mexico just to buy diesel:

When Angelo learned that diesel in Mexico is half the Arizona price, he built a large tank to fit into his truck.

“So 11 inches of the bed have been retrofitted to be a fuel tank?” Doane said.

“To be a fuel tank for the truck,” Angelo said.

And headed south nearly three hours just to fill up.

After they crossed the border into Mexico … diesel in Nogales was selling for about $2 a gallon. The Mexican government owns the stations and controls the prices.

“This is quite a trip,” Doane said. “Is it worth it?”

“For 200 gallons,” Angelo said. “Yeah, just saved myself $400.”

But getting back over the border is stressful, with hours of questions, paperwork, and taxes to pay.

“It feels like I’m smuggling marijuana back into the states and I’m just bringing diesel back,” Angelo said.

This business owner, who has run his trucking company for 40 years, believes that the sky-high gas prices may put him out of business. He has already run through a chunk of his savings as fuel costs have soared.

But how many can do what he did? Going across the border is a pain- as he relates. It’s not like you’re driving from Illinois to Indiana to fill up (which many Chicagoans have done over the years as gasoline in Indiana has historically been cheaper than on the Illinois side.)

As he indicated- there are taxes to be paid, papers to be filled out and border officials to talk to.

Many countries are subsidizing the energy costs- including China- in order to give an edge to its businesses and curb inflationary pressures.

But it tells you how desperate some business owners are. Their margins are completely crushed by energy costs. Some will not survive. Others will try and pass along the energy increases to their customers.

That means we all will pay more for our goods.

How far would you go to save money on fuel?