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Discussion Starter #1
So as diesel has inched upward (it's about $4.60/gallon here) I finally decided to go buy my diesel in Mexico. I live in Tucson, about 70 miles from the border. Went down the other day, drove into Mexico, 1 mile in found a Pemex station with gas and filled my tanks with 75 gallons of diesel. Cost me around $160, or $2.17 per gallon. That's right! Spoke with a buddy of mine who is the head diesel mechanic at a local Ford dealer who also told me that Ford did study comparing the quality of diesel in North America. Mexico had the best diesel according to them. I have to say that my mileage seems to be better with the Mexican fuel and the truck runs strong. Although I hate like hell not to keep my money in America, at that price I have to go back.

It is completely legal as well, you're allowed to bring back up to 110 gallons per vehicle in tanks that are part of the truck, no containers. Any comments?
 

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OBS junkie
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Get as much as you can for that price! Sounds like it's still high sulfer, the old 7.3L loves high sulfer! :D
 

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Man if I was that close to the border you can bet I would be filling up an extra tank to bring across. As far as spending your money here, dont even worry about it. Do you think America(federal&state) gives a rats ass about you? I say we all start crossing the border for our fuel!:D
 

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DILLIGAFF
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Although I hate like hell not to keep my money in America, at that price I have to go back.
If you think you keep your money in America by buying diesel here in the states.... wrong! I would get a 90 gallon transfer tank and fill that baby up!
 

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I have heard on cnbc i think, that most of the diesel, or all of the diesel close to the boarded comes from a u.s.a. refinery. it has been shipped to mexico from here! the reason it is so much cheaper is that mexico has a subsidized fuel program, just like china and many, many other countries. last week china hiked up the fuel price 18%, first hike for many years i believe! they interviewed some "chinese" dude, and he was blaming the u.s.a. yes, us, for the fuel price hike. they are not happy about it. i think gas had been around two dollars a gallon there for some time until now! the rest of the world is slowly starting to feel this fuel crunch! they will tapper back on consumption just like we are. so the fuel you are buying in mexico probably comes from a texas refinery.
 

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<----Simply the best.
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Mexico is far far away from us Hoosiers. Hell it takes $150 to give me 2 full tanks. Which is why I'm thinking about buying a ricer.
 

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Fire junkie
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Some buddies and I have been doing that here (just outside of El Paso Tx.) all of us have bed tanks, so we make a trip down there about every 3-4 weeks and top off, between the two tanks on the truck and the 60 gallon aux. tank in the bed it sure helps

stay safe out there
Roy
 

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I have heard on cnbc i think, that most of the diesel, or all of the diesel close to the boarded comes from a u.s.a. refinery.
I've read the opposite.
It's our strict emmissions that other countries do NOT have that makes our fuel expensive. Mexico does not have our standards, so they have no reason to buy our highly refined fuel, they buy the cheaper less refined stuff.
Not sure if it's still processed here, if it is it's just cheaper cuz it's less refined.
I can't recall the proper term, but there's a process that filters the #2 to pull the sulfer out and they do it 3 or 4 times now to meet our standards, whereas Mexico's fuel is only filtered once, like what we used to run 10 years ago...
 

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mexico does have a fuel subsidy program, and a monopoly in pemex! the price could not be so low if the government was not subsidising, like china. read the ulsd part.
and we do import alot of fuel to mexico, but i read it was alot gas, not as much diesel except for ulsd, i think they do not even refine ulsd.

http://mexidata.info/id1880.html

http://www.rversonline.org/ArtMexFuels.html
 

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Hoosier daddy!
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I have read a very opposite thing than I have read here... Claims are that the diesel refineries weren't ready for the high demand for diesel fuel... Guess everyone is buying diesels now that it's almost near $5/gal... They say that once the industry catches up, prices will go down... I say BS... Like every single one of us knows, demand has gone way down and prices still climb... The market is being manipulated and that's it... It costs no more to make diesel now than it did 2 years ago when it was still under $2... I would even wager to say that the demand for diesel is substantially less now than it was 2 years ago when it was cheaper...
 

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All done now
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I say that by the end of the year, diesel will be cheaper than gas. Couse that's because diesel will still be around $4.65 and gas will be over $5.00.
 

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The market is being manipulated and that's it... It costs no more to make diesel now than it did 2 years ago when it was still under $2...
I wish I could find the link to support what I said.
2 years ago we were burning a less refined #2 than we are today. They processed #2 twice through their system, now they do it 3 or 4 times (I don't recall exactly). Each time it gets filtered it gets more expensive.
10 years ago diesel had 5000 ppm of sulfer, or something like that. 2 years ago it was down to 500 ppm. Today it's like 6 ppm, so it's obviously more expensive now due to the refining/filtering needed to meet todays emmissions.
I don't know how much more expensive it should be now, there may very well be other factors but it definitly costs more to make today than a few years ago.
 

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AllYourBaseAreBelongToUs
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Discussion Starter #16
Just in case anyone wants to know.....One of the negatives of getting my diesel in Mexico is waiting in the line to get back, I've now resolved that. You can sign up for the "Trusted Traveler" program--you can find info on this program here: https://goes-app.cbp.dhs.gov/ ---- This program requires a $20 online fee to fill out the initial application, then $80 at an interview you must complete. Of course they want to see documents---your tax returns, license, passport, registration, insurance, etc., at the interview. Once passed, the permit is good for 5 years. The big advantage? You get to go into the "express lane", no waiting! Just a couple minutes to get through. :doh:
 

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I wonder why it is that people think you can refine diesel fuel twice as much as before and NOT run the cost up.

As I have stated repeatedly, the price differential of diesel vs RUG is entirely caused by the ULSD requirements.

Four times through the hydrodesulfurization unit (Klaus Train) now vs twice through in 2006.

The Mexicans have no such requirement. Their diesel might be 500 ppm sulfur vs the 15 ppm in ULSD.

Don't like the cost differential? Thank the EPA.
 

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Junior Mint
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The real issue is the cost of the raw material as purchased by the weakest American dollar in history.

At $146/ barrel that holds 42 gallons of crude that equates to $3.48 BEFORE refining, shipping, additives, taxes, and profit for the refinerys and distributors.

If the ULSD refining process is the problem it can't represent more than .60 cents or so per gallon because that's the difference between #2 and RUG once you remove the tax penalty the federal gov puts on #2.
 

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AllYourBaseAreBelongToUs
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I wonder why it is that people think you can refine diesel fuel twice as much as before and NOT run the cost up.

As I have stated repeatedly, the price differential of diesel vs RUG is entirely caused by the ULSD requirements.

Four times through the hydrodesulfurization unit (Klaus Train) now vs twice through in 2006.

The Mexicans have no such requirement. Their diesel might be 500 ppm sulfur vs the 15 ppm in ULSD.

Don't like the cost differential? Thank the EPA.




:D


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