Mexico Suspends Gasoline Subsidies at Northern Border, Then Reinstates Them

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After thousands of U.S. drivers were crossing into the country to fill up their tanks on Mexican government-subsidized gasoline, the nation’s Treasury Secretariat (Hacienda) on Saturday, April 2, announced that it will suspend gas subsidies along the northern border, effective immediately, at least through Friday, April 8.

Two days later, Mexican President Andrés Manuel López Obrador (AMLO) reinstated the subsidies, saying that the decision by Hacienda had been a mistake.

In a written statement on Saturday, Hacienda said that “U.S. citizens are crossing into the country and draining gasoline supplies” in the region.

But on Monday, April 4, AMLO said that there were no gasoline shortages in the north and that subsidies would be reinstated immediately.

Gasoline prices in the United States have soared as a result of the Ukraine War, which has led U.S. citizens to head south and stock up on fuel, leading to reports of gas shortages in the north of Mexico.

Consequently, Hacienda said that the government’s fiscal stimuli for Magna (regular) and Premium gasoline along the norther border states is now 0 pesos per liter.

Coincidentally, the reinstatement of the subsidies occurred just six days prior to the president’s much-touted revocation of mandate on Sunday, April 10.

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